The Dow Jones Industrial Average touched off new all-time highs, but failed to sustain the momentum and is now trading lower. The Dow is off by 0.27% on the day after poor economic data from the US soured bullish sentiment.
Retail sales and Core Retail Sales for February came in far below expectations, as did Industrial Production and Capacity Utilization Rate.
The drop in retail sales is expected to be temporary, with the $1.9trillion stimulus expected to kick off better consumer spending and improved retail sales as from April. This is perhaps why Dow’s downside move appears to have been capped.
Technical Outlook for Dow Jones
The active daily candle is undergoing a pullback, which could bring in 32666 as the immediate support target. This candle follows the hanging man candle of Monday and could lead to further bearish implications for the Dow. However, we need to see a breakdown of 32666 for 32084 to come into the picture, cementing the bearish move. 31739 and 31282 are additional targets to the south that could come into play if the decline continues below 32084.
Today’s intraday high at 33005 happens to be the new all-time high, hovering around the psychological resistance at 33000. This area presents the only barrier standing between the Dow Jones Industrial Average and new record highs, with 34216 appearing to be a potential target in the future for traders bullish on the Dow.
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Dow Jones Daily Chart
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