Thursday, October 11, 2018

DOWJONES - 12 October 2018


Fundamental Highlights

The DOW lost another 190 points on Thursday, closing at 25227.7, as investor concerns over higher labor costs, increasing yields, and the ongoing trade war – and their respective effects on corporate earnings - weighed down on the index. The market bounced back on news that China's President Xi and National Economic Council Director Larry Kudlow confirmed to reporters on Thursday that a meeting was under discussion. In economic news, Core CPI inflation printed softer at 0.1% vs an expected of 0.2%. Initial Jobless Claims printed at 214K vs. an expected of 206K, and Crude Oil Inventories increased by 5.987M vs. an expected of 2.620M. Today, Export/Import Price Index will be released at 12:30 GMT, Michigan Consumer Sentiment at 14:00 GMT, and FOMC Member Bostic will be speaking at 16:30 GMT.

Technical Analysis

The Dow tested the support level of 25150.1 which coincided with the 200-period SMA on the daily chart, broke below it and registered a low 24872, to trade back above the support line. A close above 25450.3 on the 4H chart will have prices push higher with the first resistance level at 25668.8 as target, with RSI printing above 50 and MACD showing positive momentum.

Support: 25150.1 24598.2 23963.5
Resistance: 25668.8 25782.5 26176.2 26524.7

Chart (H1)