Dow Jones made fresh all-time high breaching above the 29,000 mark, despite the disappointment from the latest NFP data. The United States economy created only 145K new jobs, well below analysts expectations of 166K in December. The job creation in December was much lower than the new job openings created in November that reached 266k, and was the lowest new jobs creation the last seven months. The unemployment rate in the US came in at 3.5% in line with forecasts.
Dow Jones ignores dismal fundamental economic and hits fresh all-time highs in a week that we came very close to war between Iran and USA. The main reason for the rally is that Fed liquidity pushes the equities higher not only in the USA but also around the world as central banks push interest rates lower and lower.
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Dow Jones Retreat From 29,000, What Next?
Dow Jones gives up 0.18% at 28,902 as traders booking some profits. The outlook is bullish as the index makes higher highs and higher lows breaking one record after the other.
On the downside, initial support for the Dow Jones stands at 28,881 the intraday low. Next level to watch would be at 28,430 the low from January 6th. Bulls will run away only if the index closes below the 50-day moving average at 28,061.
On the other hand immediate resistance would be met at the daily and all-time highs at 29,009. Next resuatsance stands at the psychological 30,000 mark.
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