The Dow Jones Industrial Average declined during its recent trading at the intraday levels. It went down by -0.12%, to lose the index by -39.09 points, settling at the end of trading at the level of 33,553.84. This happened after rising 0.17% during Tuesday's trading.
US retail sales jumped 1.3% in October, indicating that consumers are still spending a lot of money despite the Federal Reserve's efforts to slow the economy. Markets were hoping that the Fed will pull back from its aggressive pace of rate hikes.
Meanwhile, several top Federal Reserve officials spoke on Wednesday, including New York Fed President John Williams. He said that the nearly $24 trillion Treasury market must remain running smoothly, or risk turbulence that could undermine the monetary policy.
San Francisco Federal Reserve President Mary Daly also said on Wednesday that the central bank's benchmark interest rate may have to rise above 5%, putting a downward pressure on inflation. An inflation rate between 4.75% and 5.25% appears to be a reasonable range.
Federal Reserve Governor Christopher Waller said later in the session that recent economic data should allow the central bank to consider stepping back from the pace of interest rate hikes at its next meeting in December.
Dow Jones Technical Analysis
- Technically, the index’s decline comes amid the influx of negative signals on the relative strength indicators, to try to gain positive momentum that may help it recover and rise again.
- This was because it was affected by the breach of a bearish corrective slope line earlier in the short term, as shown in the attached chart for a (daily) period.
- The positive pressure of its trading above its simple moving average for the previous 50 days continued.
Therefore, our expectations suggest a return to the index's rise during its upcoming trading, as long as support remains at 32,504.00. It is targeting the important and close 34,281.30 resistance level in preparation for attacking it.
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