While European markets take a break today after new highs at the start of session, the Dow Jones is expected to open slightly lower than 0.1% this afternoon. Operators should therefore opt for caution before the President’s speech at the Federal Reserve, even if the statistics of the day are a little better than expected. The weekly jobless claims came out at 367K while the market waited for 373K and productivity increased by 0.7% while the consensus is 1%.
DOW JONES index finished the session up 0.66% at 12,716 points.
Technically, an upward bias is currently privileged Hourly Data above 12,670 points, crossing of moving averages 20 and 50 hours. In the very short term, then monitor the output of 12670/12780 points to act in one way or the other. A top out of this range would indeed require the rallying points 12830/12875 fast. In contrast, under the 12,670 points, there should be the beginning of a consolidation towards 12,560 points and 12,475 points.
Futures prices this morning have slightly reduced their lead to 14:30 after the release of the ADP survey in the private sector below expectations. 170K jobs were created while the consensus is 189K. At 16h, will still be released the ISM manufacturing index and construction spending, and oil stocks at 16.30.
The U.S. index that finished down slightly from 0.16% to 12,632 points yesterday, is now expected to rise 0.5%.
Technically, the DOW JONES is horizontal consolidation phase for several sessions within the trading range 12560/12710 points. A top out of the zone of indecision would require buy-fast 12,760 points and 12,830 points. In contrast, under the 12,560 points, we can probably expect a downward acceleration with 12,475 points and 12,315 points in sight.