The Dow index continues to drag lower with concerns over global growth and deteriorating investor sentiment. This Wednesday, the Fed offered an outlook on a slowing global economy which continued to take a toll on the market. In addition, U.S equities push lower as the yield curve remains flat adding to worries over the future of the US economy. Today’s focus should be on the result of US GDP growth figure as it may impact the market. The figure will further reflect on the progress of the US economy in turn addressing global growth concerns.
The Dow lowered by 1.99% reaching support at 22885 and forms a hammer candlestick that may indicate a minor reversal in price action should it break above 23075. The bearish trend remains intact as RSI reading slightly above the oversold threshold leaves room for the index to move past the 22885 level.
Support: 22885 / 22639
Resistance: 23075 / 23303