The Dow Jones Industrial Average declined during its recent trading at the intraday levels, to break a series of gains that continued for five consecutive sessions. It recorded losses in its last sessions by -0.58%, to lose about -201.94 points and settled at the end of trading at the level of 34,553.00, after rising on Friday, trading increased by 0.80%.
Shares of Boeing BA fell -3.59%, the biggest percentage loser among the 30 companies on the index, after a Boeing 737 passenger plane of China Eastern Airlines with 132 people on board crashed into the mountains of southern China.
Federal Reserve Chairman Jerome Powell stressed the need to tighten monetary policy at a rapid pace, adding that the upward pressure on prices from the invasion of Ukraine comes at a time of "really very high inflation".
Speaking to the National Association for Business Economics, Powell reiterated that the central bank could introduce rate increases of more than 25 basis points at a time at future meetings if policy makers deem it necessary in their fight to control inflation.
"If we conclude that it is appropriate to move more aggressively by raising the fed funds rate by more than 25 basis points at a meeting or meetings, we will do so," he said.
Earlier in the day Atlanta Fed President Rafael Bostick, a non-voting policymaker on this year's policy committee, said "high levels of uncertainty" had reduced his confidence that a "very aggressive rate path" was appropriate for that period.
Technically, the index declined after testing the ceiling of a descending corrective price channel that limits its recent trading in the short term, as shown in the attached chart. It reaped the profits of its recent rises and tried to gain positive momentum that might help it get out of the range of that price channel. As it tries, the index discharged some of its clear overbought by the relative strength indicators, especially with the beginning of the emergence of a negative crossover in them, to base the index with this decline on the support of its simple moving average for the previous 50 days.
That is why we expect the index to return to the upside during its upcoming trading, if the main support 34,000 remains intact, to target the resistance level 35,631.
