Dow Jones US30 Chart Technical Outlook crawls higher on risk appetite, bearish divergence suggests a potential correction.
Investors’ expectations that the Federal Reserve will lower borrowing costs in December while the economy remains solid, is fuelling risk appetite which boosts demand for equities.
US Data seen on Wednesday confirmed this view. ADP employment and services activity data failed to impress while Fed chairman Powell assured that the economy is stronger than what he expected when the central bank started cutting rates.
The bias remains positive, although the RSI shows a bearish divergence, suggesting that the rally is losing momentum and warning about a potential correction. Immediate resistance is at 45,050 followed by the 45,200 area. Supports are 44,500 and 43,700.
