DJIA back below Aug high
Following a weak ISM manufacturing PMI report, recession concerns have seen US stock markets drop after yesterday's Powell-inspired rally.
It is worth keeping an eye on the major indices such as the Dow Jones.
The DJIA has gone back below the August peak at 34288. A close well below this level would be a bearish outcome as it would point to a false breakout.
Interestingly, the S&P 500 has also turned lower from its bearish trend line bearish trend line
But again, it could just be a short-term dip, like we have seen many times over in this recovery.
For the DJIA, there are lots of support levels on the way down that the bears will need to reclaim if they are to exert significant pressure on the markets.
So, take this weakness with a pinch of salt. The bears still need a proper confirmation that that market has peaked. But don't ignore it if you are bullish or long.
By Fawad Razaqzada on behalf of FOREX.com
It is worth keeping an eye on the major indices such as the Dow Jones.
The DJIA has gone back below the August peak at 34288. A close well below this level would be a bearish outcome as it would point to a false breakout.
Interestingly, the S&P 500 has also turned lower from its bearish trend line bearish trend line
But again, it could just be a short-term dip, like we have seen many times over in this recovery.
For the DJIA, there are lots of support levels on the way down that the bears will need to reclaim if they are to exert significant pressure on the markets.
So, take this weakness with a pinch of salt. The bears still need a proper confirmation that that market has peaked. But don't ignore it if you are bullish or long.
By Fawad Razaqzada on behalf of FOREX.com
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