Dow dives on tight midterms ahead of inflation data
The Dow slumped Wednesday as an unexpectedly tight U.S. midterm election clouded the outcome on the winner in the battle to control congress, just a day ahead of inflation data that could further shape the Federal Reserve’s thinking on rate hikes.
The Dow Jones Industrial Average slumped 2%,
The midterms did not bring the landslide victory for the Republicans, or so-called red wave that many had recently predicted.
The GOP is still widely expected to win a narrow majority in the House, leading to the divided government, but the race for the Senate is tight after Democrats fared much better than expected in key races.
The Fed is the “bigger force in the market,” Zwei says, ahead of inflation data due Wednesday that is expected to show slowing price pressures. Energy was the biggest drag on the broader market, down 3% following a larger than expected increase in U.S. weekly crude inventories and positive news on the Ukraine-Russia war after the Kremlin ordered troops to pull out of Kherson.
Dow Jones: Technical Analysis on daily chart
In daily chart market is in up trend. Dow jones is trading below 5, and 20 Ma.
RSI in overbought zone which indicates mild bearishness.
Its immediate support is at 32528, and resistance level is at 33210.
Market will trade downside unless any reversal.