Thursday, October 18, 2018

DOWJONES - 19 October 2018


Fundamental Highlights

After ending the previous session roughly flat, stocks moved sharply lower over the course of the trading day on Thursday. The major averages attempted several times to recover but ended up pulling back again as the day progressed. The DOW closed down 327 points to 25,379. Lingering concerns about the outlook for interest rates weighed on the markets as traders continued to digest the minutes of the Federal Reserve's latest monetary policy meeting. Looking ahead, earnings news may impact trading today, with American Express (AXP), E*Trade (ETFC), PayPal (PYPL), Honeywell (HON) and Procter & Gamble (PG) among the companies due to report their Q3 results. A report on existing home sales in the month of September may also attract some attention, with existing home sales expected to drop by 0.7%.

Technical Analysis

The bears were in full control yesterday, moving the market lower throughout the whole session. Closing below Wednesday's low, the DOW confirmed it is clearly in a short-term downtrend. Selling could speed up should prices move below yesterday's low at 20,220 where further sell stops might get activated. The RSI is mixed to bullish however any pullback action might not last long unless we see a break through the 200-period MA on the hourly chart.

Support: 25100 25000
Resistance: 25640 26250

Chart (H1)