Dow Jones (US30) Chart Technical Outlook expects mixed and volatile trading while inside the wedge formation.
The focus this week is on Friday’s US Personal Consumption Expenditure data (PCE). Futures are implying around a 74% chance of a June easing up from 55% a week earlier (source Reuters). We are expecting 0.3% (MoM) and 2.8% (YoY). Anything higher and it is likely we will see a reversal on the easing forecasts. This would hurt stock indices.
US30 Technical: Although we continue to trade around all-time highs, there are warning signs that further gains could be limited.
Levels close to the psychological 40,000 Big Figure found selling interest. Mixed volatile trading has formed an expanding wedge pattern. This formation has an eventual bias to break to the downside. On a move through the trend of higher lows at 38,680, the target is 38,020. Bespoke support is located at 39,174 and 38,298.
Conclusion: we will likely see mixed and volatile trading up to the U.S. data releases later in the week
