Sunday, October 14, 2018

DOWJONES - 15 October 2018


Fundamental Highlights

US stocks traded in a wide range on Friday with a number of intraday attempts to push lower, but the Dow managed to bounce back 287 points, however still loses 4% on the week. Sentiment was rocked around the globe, as investors grew nervous over the rise in interest rates and high valuations in tech shares. We have to wait and see how the market reacts in the next few days as it's too early to tell if we're out of the woods yet with the Volatility index (VIX), considered the best gauge of fear in the market, hitting its highest level since February. Looking ahead, the earnings season will determine where we go from here with more than 50 blue chips scheduled to report earnings. US retail sales are due later today, expected to show a rebound after disappointing last month, with the minutes from the Fed’s latest policy meeting out Wednesday also closely watched.

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

Chart (H1)