Trading in the Dow Jones futures has started for the new week, and immediately the Dow Jones has weakened. However, seen from a technical perspective, Friday’s close did enough to turn the very short-term trend bullish. Also, the Federal Reserve just reduced interest rates to the 0% to 0.25% interval and announced $700 billion in asset purchases. The Fed is also working with five global central banks to supply dollars via liquidity swaps, which means that the central banks can exchange their own currency with the Fed for Dollars if needed.
Short-term Dow Jones traders will be watching the 21272 level when trading starts again after being halted because of a declining more than 5% in non-US trading hours.
The 21272 level, was formed on Friday afternoon, and the very short term trend will remain upward above it, and we might see the Dow Jones reach today’s high of 23162, followed by the March 9 low at 23422, and the March 10 high at 25063.
However, on a break to the low, the Dow Jones might revisit the 2020-low at 20404. If the 2020 low does not hold, then the index might slide to the 2017-low at 19648.
For more on the Federal Reserve, read FOMC Cuts Federal Funds Rates to 0%; Launches $700bn QE Program.
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