Wall Street experiences its worst month of December since 1980 with the Dow amounting to a 7.6% decline in a time that is historically known to be positive for US markets. The index fell over 500 points yesterday as negative sentiment continues to grow around economic uncertainty. While slowing global growth, an appreciating US dollar and slower inflation have supported the Fed’s deliverance of dovish interpretations, the final decision will resolve the dispersion between market expectations and the Fed’s monetary policy. Looking ahead, the US Federal Reserve begins its two-day policy meeting today and is expected to raise interest rates for a fourth time in 2018 when the meeting concludes on Wednesday. Investors will be looking to the central bank's accompanying statement and forecasts for clues about future rate hikes.
The Dow index fell 2.1%in yesterday’s sell off breaking main bottom at 23,894 indicating selling pressure that could extend the weakness to new bottom at 23580. The decisive move has determined a bearish direction with the short term range falling between resistance around 24851 at 100MA and April’s support of 23466. With an RSI reading hovering around the oversold area, traders can find near term resistance between 24206 and 24421 at the 50MA should bearish momentum slow down.
Support: 23572 / 23468
Resistance: 24206 / 24421