Dow Jones US30 Chart Technical Outlook Bulls eye a fresh march toward 39,582 on relative French calm, and lower inflation.
It’s a new week, month – and quarter, which means erratic market movement should be over, and broad optimism should return to markets. The scramble on Friday resulted in wild moves in stocks unrelated to data.
With economic figures back in focus, there is room for optimism. Core PCE is the Fed’s preferred inflation gauge, and it came out at 2.6% YoY, closer to the bank’s 2% target. That means increasing chances of lower rates.
The ISM Manufacturing PMI is eyed later in the day, and will likely show moderate contraction, adding to the notion of a “soft landing” and falling rates. All in all, I expect markets to find more reasons to rally.
Dow Jones (US 30) faces resistance at 39,264, and then the late-June peak of 38,582. Support is at 38,913, then 38,738. The 4h-50 SMA crossed the 4h-200 SMA to the upside, adding to bullish case.
