Friday, May 3, 2019

DOWJONES - 03 May 2019


Fundamental Highlights

US Indices ended lower on Thursday as market participants continued to digest disappointment from the FOMC meeting which saw Chairman Powell take on a neutral stance in monetary policy while lowering market’s expectations of a rate-cut. In terms of data, US Factory orders and Non-farm productivity were up 0.9% and 3.6% respectively, offsetting a rise in jobless claims. Today’s highlight comes from April’s nonfarm payrolls report and unemployment rate which is likely to impact sentiment and price action during the day. Moreover markets will continue to monitor impactful headlines on ongoing US-China trade negotiations.

Technical Analysis

The Dow Index ended 0.46% lower on Thursday, and reached an intraday low around 26120 before paring losses to end at 26307. Moreover, the Index has traded below the 20-day MA , making it vulnerable to further weakness towards support at 26080 and 26000. Finding support at 26170 may enable the index back up with a move above 26380 required to indicate buying pressure. Failure to do so will maintain the bearish possibilities on the Dow.

Support: 26240/ 26170
Resistance: 26340/ 26380

Chart (H4)