Thursday, March 21, 2019

DOWJONES - 21 March 2019


Fundamental Highlights

In a volatile session on Wednesday, The Dow Index fell 0.55% to end at 25745. The Fed signaled no rate hikes for the year and revealed that they would end their balance sheet reduction by September thereby providing relief for US equities. However, economic projections were not as relieving in that the Fed downgraded expectations for GDP growth and inflation. The accommodative monetary policy, while supportive for US corporations, may register as a concern for weaker domestic growth. Thus, the DOW index will have to follow through either one of the fundamental outlooks for direction while the Sino-US trade dispute weighs on global sentiment as Trump stated that tariffs on China may linger highlighting the ambiguity of the trade deal the two nations intend on settling. On today’s data front, the US publish jobless claims and the Philadelphia Fed manufacturing index.

Technical Analysis

The Dow index traded lower on Wednesday and reached support around 25670 before ending at 25745. The price traded through the 100-period MA to extend its pullback and will now have to trade above it and break through the 25950 level to indicate presence of buyers. Alternately, should price hold below the 100-period MA, look for a trade through the 25670 level to accelerate selling to the support at 25590.

Support: 25590 / 25520
Resistance: 25760/ 25850

Chart (H4)