Dow Jones Technical Analysis: The Index is Falling in a Volatile Session

• The Dow Jones Industrial Average fell during its recent trading on intraday levels, recording good losses in a session characterized by extreme volatility by -0.28%.
• It lost about -90.50 points, and the index settled at the end of trading at the level of 31,819.15, recording a series of daily losses that lasted for five sessions.
• After falling during last Friday’s trading by -1.07%, at the end of a week during which the index witnessed the worst weekly loss since June, by -4.43%.

Over the weekend the Federal Reserve and the US Treasury Department announced measures to stabilize the banking system and said depositors at the troubled Silicon Valley bank will have access to their deposits on Monday. The Fed also said it would provide additional funding through a new "Term Bank Financing Program," which will provide loans of up to one year to depository institutions, backed by Treasury bills and other assets held by these institutions.

US authorities also took over New York-based SBNY Signature Bank, marking the second bank failure in a matter of days.

Meanwhile, traders are no longer expecting a 50 basis point rate hike by the Federal Reserve next week. Current expectations are for a 25 basis point move, with some not even expecting any increase at all.

Currently, investors are closely watching the February CPI data, due later in the day, and the PPI data due on Wednesday, to see more clues about the Fed's rate hike path.

Dow Jones Technical Analysis

Technically, the index found some support during its recent trading after relying on the current support level of 31,727. It gave it some positive momentum that helped it make that session characterized by this fluctuation between ups and downs. The index is still under several negative pressures, the most important of which is the dominance of the bearish trend in the medium term.

Its trading is along a slope line, as shown in the attached chart for a period of time (daily), with continued negative pressure for its trading below the simple moving average for the previous 50-day period. In addition, we note the continued presence of negative signals in the relative strength indicators, despite their reaching areas that are highly saturated with trading operations. sale.

Therefore, we expect the index to decline during its upcoming trading, especially if it breaks the support at 31,727, to then target the 30,454.50 support level.