Thursday, March 7, 2019

DOWJONES - 07 March 2019


Fundamental Highlights

The Dow Index posted its 3rd consecutive day of losses as it fell 0.52% to close at 25673. The index’s notable intraday 500 point drop on Monday had set a bearish tone for the index that may well end this week in the red after it had extended its rally to November’s record high around 26240. In economic news, ADP monthly employment report fell slightly below the forecast to 183K, while the US trade deficit rose to a 10-year high of 59.8 B and weighed on US equities. Investor’s will look to today’s jobless claims ahead of tomorrow’s employment figures to assess the robustness of the US labor market. Moreover, while US-China trade progress remain a market sentiment driver, markets will tune in to today’s monetary policy decision and commentary from the ECB with an anticipated dovish outcome.

Technical Analysis

The DOW Index may be entering negative territory as the daily RSI sits slightly above the 50-midline while the price closed below the 20-day MA around 25750 on Wednesday. Sustained price action below the 25750 level will indicate selling pressure and drive the index to test Monday’s low around the 25605 level . A move below this level will signal further bearish price action, while a recovery above 25880 would be needed to bring back a bullish tone.

Support: 25520 / 25380
Resistance: 25750 / 25880

Chart (H4)