The Dow Jones Industrial Average has just hit new highs at 32695 after the consumer confidence survey by the University of Michigan beat market expectations.
The University of Michigan Consumer Sentiment (preliminary) came in at 83.0, which exceeded the market expectation of a reading of 78.4. The reading for March also beat the previous month’s figure of 76.8 to set investors scrambling to add more stocks in their portfolios.
Details of the report showed that the survey of economic conditions improved from 86.2 to 91.5, while the Consumer Expectations index component of the survey shot up to 77.5, having registered at 70.7 previously. This is the highest level that the survey has reported in a year. The Dow looks good to end the week with a 3rd straight winning close, as it is 0.47% higher as of the time of writing.
Technical Levels to Watch
The Dow Jones Industrial Average has violated the 32505 resistance projection and also yesterday’s high at 32670. A double successive daily closing penetration above 32670 is required to confirm the breakout, opening the door potentially towards 34216 (127.2% Fibonacci extension from the 13 May low to 2 September 2020 high).
On the other hand, failure to close above this level allows for a pullback towards 32084, with 31739 and 31282 serving as potential targets to the south. Only a break of the rising trendline brings in 30953 and a potential swing at 30585, otherwise, these support targets start to lose relevance with the formation of new highs.
Dow Jones Daily Chart
