Wednesday, October 24, 2018

DOWJONES - 25 October 2018


Fundamental Highlights

The Dow dropped to its lowest closing level in over three-months, while the Nasdaq and the S&P 500 tumbled to five-month closing lows. Stocks showed a substantial move back to the downside during trading amid another negative reaction to the latest batch of earnings from several big-name companies. Negative sentiment was also generated by the release of a report showing a steep drop in new home sales in September. The report said new home sales plunged by 5.5% to an annual rate of 553,000 from the revised August rate of 585,000. In the bond market, treasuries showed a notable move to the upside amid the weakness on Wall Street. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, dropped by 4.2 basis points to 3.124%. Looking ahead, more earnings are likely to attract attention today, with Microsoft, Visa Ford, Tesla, and Advanced Micro Devices, among the companies releasing their Q3 after the close of today's trading.

Technical Analysis

Moving lower for the 3rd day in a row, the Dow ended Wednesday at 24583 tanking over 600 points. The bears were in full control moving the market lower throughout the whole session. Prices are trading close to a key technical support level at 24444 on the daily chart. However in the short term the trend is clearly still bearish, with more downside expected in the next few hours. The RSI looks mixed to bearish, but soon to be in oversold territory which will trigger a buy signal.

Support: 24444 -
Resistance: 24795 25000

Chart (H1)