Dow Jones Climbs Above 100 Day MA
Wall Street indices spiked higher today with the Dow Jones adding 0.53% at 26,342.15. The Nasdaq currently is trading 0.27% higher at 8,041, while the S&P 500 trading 0.44% higher at 2,937.38. The Fed released yesterday the minutes from its FOMC July meeting. The 25 basis points “insurance cut” decision was generally agreed by the policy committee but, some members favoured a 50bps point cut and two participants favoured no change. Earlier today Kansas City Federal Reserve President Esther George in an interview said that she would be happy to leave the rates unchanged.
United States Initial Jobless Claims came in at 209K, below forecasts of 216K in August 16, the Initial Jobless Claims 4-week average increased to 214.5K in August 16 from previous 213.75K
During Asian trading session, Japanese manufacturing PMI rose to 49.5, but the figure missed consensus expectations. French PMI data came strong. The manufacturing PMI jumped back into expansionary territory at 51.0 and the services PMI rose to 53.3. Germany’s Manufacturing PMI came in at 43.6 beating expectations of 43 in August while the Composite PMI also came in at 51.4 above forecasts of 50.5 in August. The EU Manufacturing PMI came in at 47 topping forecasts of 46.2 in August.
The CBOE Volatility Index (fear Index), is down 0.25% at 15.76 just to confirm the positive market mood.
Dow Jones getting a boost from Boeing Co. +2.23% at Dow Inc.+1.34% Caterpillar Inc. and JPM, +1.23%. On the other hand, McDonald’s Corp. is -0.26% and UnitedHealth Group Inc. -0.44%.
Dow Jones after it tested the 200 day moving average and returned inside the ascending trendline, regained the short term positive momentum; while today and as of writing managed to breach the 100 day moving average. Dow Jones for the medium term is on a rising trend channel. On the upside immediate resistance is at 26,388 today’s high and then at 26,618 the 50 day moving average. On the downside Dow Jones first support stands at 26,262 today’s low and then at 25,616 the 200 day moving average.
The European Indices trading mixed today, the FTSE 100 is 0.92 per cent lower at 7,138 as the pound trades above 1.2135. DAX 30 is 0.15 percent higher at 11,820 while CAC 40 in Paris also trades 0.27 percent lower at 5,420.
Traders await the central bank meeting at Jackson Hole, starting today with Fed chairman, Jerome Powell, set to speak tomorrow.