DOW JONES INDEX: NEWS & TECHNICAL Analysis
Dow Futures Rise 200 Pts; Services PMI Data in Focus
U.S. stocks are seen opening higher Tuesday, starting the holiday-shortened week on a positive note after three straight weeks of losses as investors prepare for more Federal Reserve interest rate hikes.
At 07:00 ET (11:00 GMT), the Dow Futures contract was up 200 points, or 0.6%, S&P 500 Futures traded 28 points, or 0.7% higher, and Nasdaq 100 Futures climbed 95 points, or 0.8%.
Wall Street was closed on Monday as the U.S. celebrated Labor Day, having ended last week on a negative note, the third losing week in a row.
A summer rally in stock markets has taken a hit since Fed chief Jerome Powell’s hawkish-sounding speech at Jackson Hole, where he warned that the Fed’s fight against inflation could result in economic pain.
Federal Reserve policymakers next meet in late September, and investors will carefully study economic data before this to try and gauge how much further the policymakers will take rates higher while trying to tame inflation.
Friday’s nonfarm payrolls showed the labor market remains reasonably healthy, with 315,000 positions added last month, and attention Tuesday will be on the Institute for Supply Management August Non-Manufacturing PMI data, at 10:00 ET (14:00 GMT), with economists expecting a reading of 55.1, down from 56.7 in July.
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 over sold zone which indicates mild bullishness. MACD is currently below zero which indicates bearishness.
Its immediate support is 31193.00 & the resistance level is at 31780.00.
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 their trend reversal. So, remain bearish on DOW JONES INDEX.