The Federal Reserve on Wednesday held interest rates at near-zero, but hinted that the U.S. economic recovery is getting closer to a place where it may not need as much monetary support.

Source: https://finance.yahoo.com/news/fed-fomc-monetary-policy-decision-july-2021-133205460.html

Following the announcement the Dow Jones had been falling since from its peak at 35636 to 34646 (at the time of writing).

FOMC Announcement triggered a risk-off mode and investors sold off the Dow Jones and shares for the safe haven assets Japanese yen, Swiss Franc and US dollar.

The Dow Jones is down 1000 Points (-2.81 %) and further down is possible with strong bearish momentum.

  33746 which worked as a support on 19 July 2021, and if breached the next level would be 

  33045 which supported the US30 on 21 June 2021.

The Dow Jones recovered from 18210 on 23 March 2020 following the crash caused by the Covid-19. The recovery was strong and relatively fast, The Dow broke ATH of 2020 and made a new ATH with 20% up which is 6026 Points.

The weekly candle it is forming now is bearish engulfing and has broken last week low and falling rapidly, this is a correction which can extend further down to 10% from ATH to 33K area.

The price is trading below the 50 and 200 EMAs which work as a resistance at the meantime. The MACD has a sell signal cross, and RSI reading is 26 which is over-sold, however, last correction on 19th of July 2021 the RSI did fall to 18 level.

Concussion: The FOMC triggered a risk-off mode sending the Dow Jones deep down fast, the Indicators are bearish and investors continue to sell. Next support at 33746.

FOMC triggered a sell-off in the Dow Jones today

Aug 19 2021

Take Profit +2.72%

Holding time 32d7hr

34670.08

Entry price

33726.43

Take profit price