Dow Jones US30 Chart Technical Outlook is likely to remain weak on cautious markets, with 39.070 support on focus.
On Tuesday, the Dow Jones lagged the major US indexes and extended its reversal for the second consecutive day. Investors are increasingly cautious ahead of a key US PCE inflation release, which might keep demand for equities subdued.
US data was mixed on Tuesday, with the CB Consumer Confidence Index showing a moderate contraction with housing prices remaining high. Ferd speakers affirmed that they need more data to confirm that inflation is coming down, which increases the interest on Friday’s PCE Prices Index report.
With a light US calendar ahead, I expect the index to keep a neutral to negative tone. Immediate support at 39,070 might be retested. Below here, the target is 38,770. Resistances are 39,275 and 39,601.
