Dow Jones (INDEXDJX: .DJI) Index is tanking once again after a brief rebound from the fresh monthly lows. Dow Jones Industrial Average has underperformed the S&P 500 index and Nasdaq 100 index since the start of the year. While Nasdaq 100 index is trading at its highest level of the year, DJI is still trading 4% lower.
On Tuesday, Dow Jones Index closed the day with a massive drop of 336 points. This meant a 1% loss for the benchmark index during the second trading session of the week. The drop came on a day when S&P 500 closed the day with a 0.64% loss.
Dow Futures Rebound Today
After a steep drop on Tuesday, Dow Futures opened higher on Wednesday. The futures gained 126 points during their London session. This translated into a 0.37% rebound from the previous close. At press time, Dow Futures were changing hands at 33,180 points.
The April 2023 CPI report showed that the inflation has dropped to its 12 months low. The markets reacted positively to the news. The biggest gainers were the tech stocks which had strong earnings in the first quarter of 2023.
Dow Jones Index May Retest 31,700 Soon
A look at the INDEXDJX: .DJI shows that the time is running out for the bulls. The index has recently formed a lower low on the daily chart which suggests that another retest of the 200 MA is on the cards. The 200-day moving average currently lies at 32,800.
If the 32,600 level doesn’t hold, Dow Jones Index forecast will flip extremely bearish. In such an event, a retest of the March 2023 lows will be the most likely scenario that lies around the 31,700 level. This is a major support level on the daily timeframe and is also the 0.5 fib retracement level.
I’ll keep posting my Dow Futures analysis in my free Telegram group, which you’re welcome to join.
