US equities declined as investors reflected on the mixed economic data from the country. Early this week, data revealed that the country’s inflation declined in August as new cars and airfare prices fell. Additional data published on Thursday revealed that retail sales boomed in the US even as prices and supply shortages rose. Retail sales rose by 0.7% in August while core sales rose by 1.8%. At the same time, data by the Philadelphia Federal Reserve showed that the manufacturing index rose from 19.4 to 30.7 in August. Initial jobless claims also ticked upwards, sending a mixed picture of the country’s economy. The Dow Jones, S&P 500, and Nasdaq 100 indices fell by more than 0.40%. In our previous analysis we anticipated this bearish move based on Dow Jones 30 on failing to break above exponential moving average 50 in daily and reversed with a bearish tone towards 34505. Now keeping the expected bearish correction of higher degree in daily time frame in regards, we required Dow Jones 30 to provide a strong bearish fractal closing below 61.8% fibb level which would lead the market for completion of bearish correction of higher degree at exponential moving average 200 in daily i.e 33600.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

According to fibb retracement levels being drawn on the daily chart, the Dow Jones 30 currently stands above our major support price action 33871 i.e 61.8% fibb. If Dow Jones 30 provides a bullish closing above the aforementioned support, this would indicated hawkish projection towards 35000 again. On the bearish side, if Dow Jones 30 broke below 61.8% fibb, this would provide us with a dovish projection at 50% fibb at 33329 and exponential moving average 200 in daily time frame i.e 33100. 

DJ30

Sep 20 2021