The Dow Jones futures are down nearly 538 points today, in an extension of yesterday’s selloff. Today’s steep drop comes in what has been a battering day for global stock markets. Risk-off sentiment is fully in play as stocks and commodities markets across the globe are all on offer. Safe haven assets such as the Japanese Yen, gold and the Swiss Franc are in demand at this time.
The Dow Jones futures selloff yesterday was triggered by poor ISM Manufacturing PMI data from the US. The report showed that economic conditions for manufacturing had worsened from the previous month, and had a second print below the important 50 threshold level. Today, ADP Employment data came in slightly below market estimates. However, the bearish sentiment intensified as the previous month’s figure was heavily revised lower.
Another factor suppressing stocks according to President Trump in a tweet is the “impeachment nonsense”.
A break below the rising wedge opens the door to potential attainment of the 25,399 horizontal support, the multi-week lows of March and August 2019.
A failed break of the wedge’s lower border will allow price activity on Dow Jones index asset to continue trading within the wedge’s borders, where it will interact with the immediate resistance seen at 26,704, the multi-week highs of April 2019. Above this level, the September 2019 high of 26, 978 could constitute another pit stop.