Tuesday, October 9, 2018

DOWJONES - 10 October 2018


Fundamental Highlights

The DOW failed to make much progress on Tuesday, losing 38.6 points and closing at 26430.6, as yields on the benchmark U.S 10-year note reached fresh seven year highs on the back of upbeat economic data and increased expectations of upcoming rate hikes, to later fall back on comments of President Trump that the Federal Reserve was going too fast in raising rates. Investors are also worried about global growth prospects, as the International Monetary Fund cut global economic growth forecasts for 2018 and 2019, warning the U.S. and China of the consequences of their trade war and its negative impact which will be felt next year. President Donald Trump also repeated a threat to impose tariffs on $267 billion worth of additional Chinese imports if Beijing retaliates to Washington’s recent tariffs. In economic news, the PPI data is set to be released at 12:30 GMT.

Technical Analysis

The Dow broke the intermediary downtrend channel as it formed higher lows retesting the 26485.8 resistance level with the 20-period SMA still holding above the 50-period SMA. A close on the 4H timeframe above 26498.5 will indicate bullish momentum and push prices higher towards our respective resistance levels, while a break of our short term uptrend will have the opposite effect.

Support: 26416.6 26345.7 26259.1
Resistance:.26485.8 26547.8 26599.5 26663.1

Chart (H1)