Home ETF News Dow Jones Industrial Average 2 Minute(INDEXDJX:.DJI): All Eyes On The Fed

Dow Jones Industrial Average 2 Minute(INDEXDJX:.DJI): All Eyes On The Fed

by TradingETFs.com


Economic numbers came in as expected on Tuesday.   The Consumer Confidence number came in at a strong 138.4.   Equities were having a tough time determining direction as the major indices floundered. They opened slightly higher, but quickly began a slow and steady move to the downside.  The move lasted until the final bell. The NDX was holding up better with some of the largest Techs holding it up. By the end of the session, the major averages ended mixed and little changed.  The SPX was down slightly for the third straight session after setting new highs last week. The 10YR continues to inch higher and ended at 3.10. The FOMC is expected to raise rates today a quarter point.                                                            

At the close on Tuesday, the Dow Jones Industrial Average (DJIA) fell 69.8 points, the SPX inched down 3.8 points, and the NDX added 14.1 points.  Breadth was slightly negative, 1.2 to 1, on below average volume. ROC(10)’s declined in the session, with all three major indices remaining in positive territory.    RSI’s were mixed, with the DJIA and SPX moving slightly lower. The DJIA continues to lead at 64.6, but has come off overbought territory. The NDX moved up to 56 and the SPX slipped to 60.7.  The DJIA and SPX continue with their MACD above signal. The NDX remains below signal. The ARMS index ended the day at 0.98, a neutral reading.

The DJIA and SPX came off last week’s highs and are consolidating for the last couple sessions.  The major averages remain with good near term technicals and above short term trend lines. The DJIA ended the day on Tuesday at 26496, above its 20D-SMA of 26163.   It also pulled back below its upper Bollinger Band® of 26680. The SPX closed at 2915, just 15 points below its closing high of last week. Its 20D-SMA is now at 2900. It is just below its upper Bollinger Band® of 2932.  The NDX eked out a slight gain to 7563. It managed to hold above its 20D-SMA of 7536. In the last two weeks, the NDX tested and bounced off its 50D-SMA. Currently, its 50D-SMA is at 7450. The VIX added 1.8% to end at 12.42.  

Near term support for the NDX is at 7536 and 7500. Near term resistance is at 7600 and 7660. Near term support for the SPX is at 2900 and 2888. Near term resistance is at 2930 and 2940.

Europe is mixed in early trade Wednesday, while US Futures are higher in the premarket. Major economic reports on tap today include New Home Sales at 10:00am and the FOMC announcement at 2:00pm.

The SPDR Dow Jones Industrial Average ETF (DIA) rose $0.53 (+0.20%) in premarket trading Wednesday. Year-to-date, DIA has gained 7.90%, versus a 9.39% rise in the benchmark S&P 500 index during the same period.

DIA currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #4 of 82 ETFs in the Large Cap Value ETFs category.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, David Chojnacki, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Dave Chojnacki

Dave Chojnacki is the Chief Market Technician at StreetOne Technical Analysis. In addition, he is Portfolio Manager for Sabretooth Advisors.

Dave develops a morning newsletter providing clients a daily look at market technicals of the major indices and selected ETF’s. Market trends, support and resistance levels are provided in the daily letter. The Technical portion of the daily can also be found on Seeking Alpha. Mr. Chojnacki has been quoted in a number of industry publications including the Reuters, ETF Trends, Minyanville, Yahoo Financial and Investors.Com.

Prior to joining StreetOne Technical Analysis, Dave designed and developed I/T Systems for the Insurance and Financial Industries.



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