dow jones
The Dow Jones Industrial Average is sharply lower after the December version of the Durable Goods Orders fell below expectations. Durable goods orders m/m came in at 0.2% in December, which was less than the expected figure of 1.0% and November’s reading of 1.0%. This drop was primarily due to the continued weakness in the new aircraft orders at Boeing. This report soured the sentiment in the market ahead of the FOMC decision.
The Dow is presently trading 1.08% lower as of the time of writing. The US markets are waiting on the Fed, which is expected to come out with the same stance as the last time, with little change in the wording of its statement.
January’s price action on the daily chart shows what appears to be a triple top pattern in evolution, with 30585 serving as the neckline. A breakdown of the neckline targets 29842 as the projected price point at which the measured move from the pattern terminates. This move has to take out 30358 and 30101 along the way for this price move to be actualized.
On the other hand, a bounce on the neckline retests the 31288 all-time high, with a break of this level creating a new high. The next target for this price advance could be the 100% Fibonacci extension point at 32505. Above this point, 34216 (127.2% Fibonacci extension) serves as a potential additional target to the north.
