Dow Futures Slip Amid Federal Reserve’s Hawkish Outlook
25 Sep 2023
Dow futures slightly decline as hawkish Fed and budget concerns weigh.
A potential U.S. government shutdown is getting closer, and investors are still feeling the strain from the Federal Reserve’s hawkish stance, as U.S. stock futures traded slightly down on Monday.
The Dow Futures contract was down 5 points, or 0.1%, around 06:15 ET (10:15 GMT).
The suggestion from the U.S. central bank that interest rates would remain high for longer than expected is weighing hard on the main Wall Street indices, which appear set to start the final week of September on a negative note.
Last Monday, the Fed kept interest rates unchanged but gave the impression that it would do so again this year. Additionally, it indicated that there would be only two rate decreases in 2019, which is less than their previous round of estimates from June.
This week, several representatives from the U.S. central banks are set to give speeches, beginning with Minneapolis Fed President Neel Kashkari later Monday. Given that important inflation data is scheduled for release at the end of the week, their comments will be keenly analyzed for indications of upcoming policy changes.
The ongoing budget impasse, which will result in the federal government’s operations running out of money at the beginning of October, is another factor weighing on public opinion.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading within a down channel.
Dow Jones is positioned below all Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Selling zone, while the Stochastic oscillator suggests a negative trend.
Immediate Resistance level: 34325.10
Immediate support level: 34123.70
HOW TO TRADE DOW JONES
Following a price increase, the Dow Jones fell and began trading in a downward channel until it hit support, at which point the price started attempting to recover.
Price was currently unable to maintain an upward trend; as a result, it encountered resistance and began to decrease rapidly. The price is currently trading at a crucial support zone; if this zone breaks down, further fall is possible.
TRADE SUGGESTION- STOP SELL – 34027.37, TAKE PROFIT AT- 33817.21, SL AT- 34193.75.