(MENAFN– Daily Forex) The
dow jones industrial average
advanced its recent trading on the intraday levels, to achieve gains for the second session in a row, by 0.76%, adding the index to it about 254.07 points. It settled at the end of trading at the level of 33,629.57, after its rise during Friday’s trading by 1.00%, at the end of a week during which the index witnessed a decline of -2.70%.
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The index extended its gains on intraday levels, helped by gains in technology stocks. Investors prepare for a week full of corporate earnings reports for the fourth quarter, which will witness many major names announcing their quarterly results.
This week, the Fed’s policies and officials will be out of the minds of traders, as the Monetary Policy Committee enters a period of hiatus from media appearances or speeches before its next meeting in February.
The markets look forward to the committee raising interest rates by 25 basis points on the first of February. That brings the target range for the Fed rate to 4.50%-4.75%.
Yet inflation is still too high for the Fed’s liking, and most FOMC members continue to state publicly that rates must rise further to bring inflation back to the 2% target.
Meanwhile, the leading economic indicator in the US fell by 1% in December and delivered stronger signals that a recession may soon occur. Economists had expected a decline of 0.7%. The Leading Index is a measure of 10 indicators designed to show whether the economy is getting better or worse. The report is published by the nonprofit Conference Board.Dow Jones Technical Analysis
- Technically, the index shows some positive signs, as we notice a positive intersection with the relative strength indicators, after reaching highly oversold areas, to try, with its recent trading.
- It got rid of the negative pressure of the simple moving average for the previous 50-day period, considering its trading along a corrective and bullish sub-slope line in the long term.
- The short one, as shown in the attached graph for a (daily) period of time, which has been modified based on the new data compared to our previous reports.
Therefore, our direction turned positive, as we expect more rises for the index during its upcoming trading, as long as the 32,582.00
remains intact, to target the pivotal and stubborn 34,281.36 resistance level, in preparation to attack it again.
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