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Forex

Dow Jones index romps higher, leaps 371 points

Dow Jones index romps higher, leaps 371 points

Dow Jones index rushed higher in the stock market yesterday as the DJIA leapt 371 points, thanks to big gains from Apple, Microsoft and Disney.

9 August 2019 | SQUARED DIRECT – US indices ended sharply higher on Thursday as China’s support for a stable yuan helped buoy sentiment amidst the uncertainty of the US-China trade war that markets have feared may turn to a currency war. Economic data was in support of the higher move as jobless claims declined by 8K to reach 209K.

Today the US publishes PPI data which would reinforce the prospect of further monetary policy easing should inflation remain tame. Apart from the data, Market participants should remain wary of any changes in the Chinese currency and trade headlines as the higher moves have not been in light of improved fundamentals buts rather unmet fears.

Dow Jones index technical analysis

The Dow posted sharp gains on Thursday as it added 371 points to end at 26378. The price managed to hold above the 26000 level and surged through the resistance near the 100-day MA at 26280.

Today look for a sustained move above the 26220 level to indicate buying pressure and drive the Dow to test the 50-period MA acting as dynamic resistance at 26370 and guarding the higher resistance at 26577 near the 50-day MA. Failure to hold above 26220 and overcome the 50-period MA should lead price lower towards the 20-period MA near 26000.

Support: 26220/26000
Resistance: 26370/ 26570

Chart (4H)

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