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Trends & Analysis
News

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News

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News

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EUR rises as Germany plans massive spending surge

Asset Watch

Possible Reversal in Dow Jones Index Price

 

Tuesday, 11 March 2025

US Stock Indices Extend Losses

US stock indices continued their decline, driven by concerns over a potential economic slowdown following statements from the Trump administration. President Trump’s decision to impose tariffs on major trading partners—aimed at offsetting proposed tax cuts—has further fueled uncertainty.

Investor sentiment turned more bearish as selling intensified, particularly in major technology stocks, with capital shifting toward defensive sectors. The decline accelerated at the start of this week’s trading session, following weaker-than-expected growth figures for the first quarter.

 

What Are Markets Watching?

Investors are closely monitoring the upcoming US Consumer Price Index report scheduled for Wednesday March 12 at 4:30 PM UAE time, which will provide insights into February’s inflation trends. Expectations point to a potential increase, as businesses preemptively adjust prices ahead of pending tariffs. Additionally, higher energy prices in February could contribute to inflationary pressures.

While the YoY inflation headline may remain stable around 3%, the market’s main concern is the slowing growth rate. If coupled with a rise in unemployment from 4.0% to 4.1%, as indicated in the latest jobs report, pressure on the Federal Reserve to cut interest rates could intensify – potentially as soon as the May meeting.

 

Reversal Pattern on Dow Jones Daily Chart

This week, Dow Jones Index prices tested the neckline of a double-top reversal pattern at 41,734 but failed to close below it, indicating that the sideways trend may persist. However, a daily close below this neckline could trigger a deeper decline toward 38,561, provided the price remains below this key level. In this scenario, the psychological support level at 40,000 should be closely monitored.

 

Key Levels in the Bullish Scenario

If the price holds above the neckline, it would signal a continuation of the sideways movement, potentially leading to a rebound toward 43,114. A daily close above this level could pave the way for further gains, with the index targeting 45,000. However, the resistance zone between the 50-day moving average and the March 3 high at 44,042 should be carefully observed.

Dow Jones price – Daily Chart

Chart Source: ADSS Platform

 


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