Latest Indices News & Technical Analysis Forecast – 14 February 2023
14 Feb 2023
Dow pops 370 points ahead of Tuesday’s inflation.
Stocks rose Monday as traders looked ahead to Tuesday’s key inflation report.
The Dow Jones Industrial Average closed 376.66 points higher.
Investors will get more inflation data this week. On Tuesday, January’s consumer price index report will be released, showing if price increases have slowed amid the central bank’s rate hikes.
So far, investors seem to be betting on a solid CPI print on Tuesday that shows inflation is cooling and that a pause or pivot in Fed rate hikes may be near.
“The Goldilocks-like mix of industrial production recovery and falling inflation we expect this quarter has helped boost risk appetite and equities,” said Ray Farris of Credit Suisse in a Monday note.
This boost could dissipate by the summer, however, especially as the lagging impact of central bank rate increases tightens global financial conditions.
On the flip side, a miss on the Tuesday report would likely signal that the Fed will hike interest rates even more, putting downward pressure on equities.
“The market is starting to sense that the very comforting disinflation story is more complex than we’d like it to be,” Mohamed El-Erian, chief economic advisor at Allianz, said on CNBC’s “Squawk Box” on Monday.
The Dow last week slipped 0.17%.
Next, investors will be looking at the January consumer price index report, due Tuesday morning. The inflation data will signal what the Federal Reserve may do next.
DOW JONES TECHNICAL ANALYSIS
Dow Jones is currently trading in up channel.
Dow Jones is currently trading above SMA.
RSI is in buying zone which suggests bullishness and Stochastic suggests up trend.
Dow Jones’s immediate resistance is at 34405 & its immediate support level is 34209
HOW TO TRADE DOW JONES IN THIS WEEK
Dow Jones is trading in an up channel; it will continue to trade upside until any reversal so, remain bullish on it.