Dow Jones slumps as expected, Fed talk in focus.
“Stocks ended lower; Dow may extend its tumble.”
US equities tumbled on Tuesday, snapping out of previous bull-run with Dow Jones Industrial Average knocked lower by 0.47% to 32,909.59. Investors continue to trim their holdings in equities as they anticipate more hawkish tilts from the Federal Reserve at the upcoming Jackson Hole symposium.
Quick recap of US30
For the time being, US30 structure remains tilted towards the downside as it recently retraced from the top level of the channel.
US30 Weekly Technical Analysis
From weekly perspective, the index has formed a shooting star, signaling for an extension towards the downside. This also coincides with recent retracement from the top level.
US30 Daily Technical Analysis
From daily perspective, the index closed below the 200-MA line while currently testing at 32824. The support level will provide confirmation for further extension towards the downside.
Trading Idea
ORDER: SELL STOP
ENTRY: 32600
STOP LOSS: 33020
Target 1: 32140
Target 2: 31600
ZFX Analyst’s Comment
The index is expected to undergo short-to-mid-term bearishness as it retraces from the top level of the channel.
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