DOW JONES: NEWS & Technical Analysis

Dow Futures Rise 115 Pts; Sentiment Positive Ahead of Key CPI Release

U.S. stocks are seen opening higher Monday, continuing the positive tone seen at the end of last week ahead of the release of key inflation data which could guide the Federal Reserve’s thinking.

At 07:00 ET (11:00 GMT), the Dow Futures contract was up 115 points or 0.4%, S&P 500 Futures traded 20 points or 0.5% higher, and Nasdaq 100 Futures climbed 60 points or 0.5%.

The major equity averages started September on a strong note, snapping a three-week losing streak, with the S&P 500 closing up 3.7% in the first full week of the month, the NASDAQ Composite jumping 4.1% and the Dow Jones Industrial Average climbing 2.7%.

This tone is set to continue Monday, helped by news of big gains on the battlefield for Ukraine over the weekend, which raised hopes for a quick end to the war and to the destructive mutual economic blockade between the West and Russia.

That said, the overall tone remains one of caution ahead of next week’s policy-setting meeting of the Federal Reserve, which is expected to result in the U.S. central bank hiking interest rates by 75 basis points to combat inflation, for the third meeting in a row.

Ahead of this, the August inflation report is due for release on Tuesday and will be one of the last pieces of data on inflation the Fed will see ahead of its September meeting.

DOW JONES Technical Analysis: Daily Chart

In the daily charts, DOW JONES is trading in down channel. DOW JONES is currently trading above 20 and 100 days SMA & below 50 days SMA.

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

Its immediate support is 31969.70 & the resistance level is at 32461.78.

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 their trend reversal. So, remain bearish on DOW JONES INDEX.

TRADE SUGGESTION- SELL AT 32225.00, TAKE PROFIT AT 31969.70 AND STOP LOSS AT 32461.78