Investors are also waiting for some economic data during the week, the most important of which is the jobs report on Friday for the month of January, as investors believe that any signs of weakness in the labor market will be a major indicator of a decline in high inflation.
- The Dow Jones Industrial Average fell in its recent trading on intraday levels, breaking a series of gains that lasted for six consecutive sessions, recording losses in its last sessions by -0.77%.
- It lost about -260.99 points, to settle at the end of trading at the level of 33,717.10, after rising during the trading day.
- Last Friday, it increased by 0.08%, to close its third consecutive week with gains of 1.81%.
Stock markets are crashing again
The Fed is expected to raise interest rates by 25 basis points. It slowed its hawkish pace for the second consecutive meeting at the end of the two-day monetary policy meeting that ends on Wednesday, amid signs that US inflation is beginning to abate.
Traders will also await comments from Federal Reserve Chairman Jerome Powell following the rate decision announcement, which will set the tone for the central bank’s policy outlook for the coming months.
Investors are also waiting for some economic data during the week, the most important of which is the jobs report on Friday for the month of January, as investors believe that any signs of weakness in the labor market will be a major indicator of a decline in high inflation. The economic agenda also includes other data such as indicators of the manufacturing and service sectors.
Dow Jones Technical Analysis
Technically, the index declined due to the stability of the pivotal and stubborn 34,281.36 resistance level, the resistance that we had referred to in our previous reports. With this decline, the index tries to gain positive momentum that may help it recover and rise again and breach that resistance.
This comes in light of the dominance of an upward corrective wave in the short term and along a trend line, as shown in the attached chart for a period of time (daily). Positive support continued for its trading above its simple moving average for the previous 50-day period. Relative, after earlier reaching oversold areas.
Therefore, our expectations suggest that the index will rise again during its upcoming trading, but with an important condition, which is its first penetration of the aforementioned 34,281.36 resistance level, to then target the first resistance level at 35,361.36.
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