Thursday, November 15, 2018

DOWJONES - 15 November 2018


Fundamental Highlights

Stocks fluctuated wildly over the course of the trading session on Wednesday then ended up moving to the downside. The Dow pulled back firmly into negative territory falling over 200 points. Negative sentiment may also have been generated by comments by Congresswoman Maxine Waters, who is expected to take over the powerful House Financial Services Committee in the next Congress. Meanwhile, traders shrugged off a report showing consumer prices increased in line with estimates. Trading today may be impacted by reaction to US economic news, including reports on retail sales, weekly jobless claims, regional manufacturing activity, and import and export prices.

Technical Analysis

After trading down to 24935 earlier during the day, the stock index bounced off the psychological support level at 25,000. The failure to close below this support in the next few days could increase that levels importance as support going forward. The index however is back below the 200-period average on the 4H chart, and after having been unable to move above 25510 in the prior session, the Dow ran into sellers again around the same price level yesterday, missing to move higher than 25501 and confirming the downtrend in both the short and medium terms. Only a close back above the 200-period MA can bring the bulls back.

Support: 25025 / 24355
Resistance: 25275 / 25555

Chart (H4)