Dow Jones Industrial Average futures closed lower on Tuesday as some
investors moved to the sidelines ahead of Wednesday’s U.S. consumer
inflation report and the release of the minutes from the Fed’s latest
meeting. Meanwhile, bond yields are poised to move
higher and the U.S. Dollar is pressing its highest level in a year on
bets that monetary policy will soon be tightened.
On Tuesday, December E-mini Dow Jones Industrial Average futures settled at 34193, down 183 or -0.53%.
Two U.S. Federal Reserve policymakers said on Tuesday that the
central bank has kept pace with a planned move to reduce its bond buying
program, cementing expectations that the Fed will start withdrawing its
crisis-era stimulus as soon as next month.
On the upside, Nike Inc closed 2.04% higher. Salesforce.Com Inc
finished at +1.92%. On the downside, Intel Corp lost 2.38% and Amgen Inc
was off by 2.33%.
Technical Analysis
The main trend is down according to the daily swing chart. However, momentum is trending higher.
A trade through 34934 will change the main trend to up. A move through 33383 will signal a resumption of the downtrend.
A sustained move under 34132 will indicate the presence of sellers.
If this move creates enough downside momentum then look for a possible
acceleration into 33826.
Buyers could come in on the first test of 34132 – 33826, but if the
bottom falls out then look for another acceleration into 33383.
A sustained move over 34132 will signal the presence of buyers. If
this move creates enough upside momentum then look for a surge into
34383.
Since the main trend is down, sellers could come in on the first test of
34383. Overtaking it, however, could trigger an acceleration into
34619. Look for sellers again.
