- Dow Jones Index Market: Time to sell or buy a dip?
- Technically, the retracement was triggered at the Friday closing yesterday.
NEW YORK, May 23 (FintechZoom) – Stock futures rose in Friday trading after the Dow Jones Industrial Average fell for the 8th straight week amid a broader market sell-off. On the Dow’s industrial average (INDEXDJX: .DJI) Futures were up 224 points, or 0.72%. In Friday’s regular trading session, the Dow was up 8.77 points at 31,261.90 after sinking as much as 600 points.
Last week marked the Dow’s first eight-week losing streak since 1923. Investors are trying to understand what’s really going on and are always trying to guess the outcome. Investors and markets hate uncertainty. This period is where they have no clear indication of what will happen to the pull between inflation and the economy. At the end of the week, investors are looking forward to a new batch of earnings this week, including an array of big retail names, such as Costco, Nvidia, Dollar General, Nordstrom, and Macy’s.
With the central bank reining in stimulus due to a spike in inflation, shares are selling in the hands of investors who believe a recession is inevitable. All of this is driven by two major forces reaffirmed this week: inflation and how high it is. And the second is how aggressively the Federal Reserve will try to control it.
Friday’s rollercoaster ride ended a turbulent week for US stock markets. The Fed has been the main driver of this market downturn, but recent news from retailers has added additional concerns to the economic outlook.
However, the market sentiment last Friday was quite surprising, where the bearish trend continuing was countered by bullishness, so it gave a good signal result for triggering the retracement probability.
Dow Jones technical analysis:
We can see the long wick in the bearish trend on Friday’s support rejection. As we know, it should be a market reaction after a long rally in a bearish trend. The buyers are still in “wait and see” mode and can’t easily take action to buy for long. March 2021 support has been touched, so what will we do? Is it a good time to buy because it’s the retracement moment? Or still, wait and see to make sure the reversal is confirmed?
The new resistance above the 100-hour SMA has not been touched to date. Although support has been touched and rejection was confirmed last Friday. Possible patterns to occur are bullish for a moment to retest resistance area 32200-32500 or continue the existing trend.
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