. DOW JONES - Index News & Technical Analysis Forecast

DOW JONES – Index News & Technical Analysis Forecast

11 Oct 2022

Dow Futures Fall 0.6% as Recession Fears Weigh

U.S. stocks are seen opening broadly lower on Tuesday, a day after the Nasdaq recorded its lowest close since July 2020, pressured lower by persistent worries over the impact of rising interest rates.

At 07:05 ET (11:05 GMT), the Dow futures contract was down 193 points, or 0.6%, S&P 500 futures traded 26 points, or 0.7% lower and Nasdaq 100 futures shed 73 points, or 0.7%.

The main equity indices closed sharply lower Monday, with the Nasdaq ending down 1.04%. The Dow Jones Industrial Average was off 0.3%, while the S&P 500 declined about 0.8%.

Investors remained cautious ahead of what will be closely watched inflation data later in the week as well as the start of third quarter earnings season on Friday, when the largest U.S. lenders are due to report.

Analysts expect the bank results to show a slide in net income after market volatility hit investment banking activity and lenders set aside more rainy-day funds to cover losses from borrowers who fall behind on their payments.

Banks typically earn more when interest rates rise because they can charge customers more to borrow, but higher borrowing costs also impact on demand for mortgages and other loans.

The U.S. is to release the consumer price index report for September on Thursday followed by retail sales figures, also for last month, on Friday.

Recent comments by Federal Reserve officials have indicated that turbulence in financial markets would not deter them from acting to lower inflation.

DOW JONES Technical Analysis: Daily Chart

In the daily charts, DOW JONES is trading in down channel. DOW JONES is currently trading below all SMA.

RSI is in selling zone which indicates bearishness. MACD is currently below zero which indicates bearishness.

Its immediate support is 28921.00 & the resistance level is at 29537.00.

DOW JONES INDEX will trade in down channel until there is trend reversal.   

How to Trade DOW JONES INDEX this Week:

DOW JONES INDEX will follow the downtrend until there is trend reversal. So, remain bearish on DOW JONES INDEX.