Dow Jones Touches New High At 30371, But Quickly Loses It On Lack of Stimulus

Summary:

Dow Jones briefly touches all-time highs before retreating on the lack of further progress in US Congress stimulus negotiations.

Stimulus expectations appear to have dimmed this Friday, and the Dow Jones is taking a hit as a result. The Dow Jones Industrial Average opened the day to new record highs at 30371, but lack of follow-through buying failed to take the index beyond the current resistance at 30358/30361.

Heading into the holiday week, there is still no sign that the US Congress will pass a stimulus package to enable Americans with critical financial needs get some support from the government’s coffers. On a day where macroeconomic fundamentals are sparse, the Dow has drifted lower as a result. The addition of China’s top chipmaker SMIC to a trade blacklist is also creating a situation on which investor caution thrives. The Dow Jones Industrial Average is presently trading 0.58% lower.

Technical Levels to Watch

Today’s drop towards 30101 retests this support level yet again this week. A drop below this level would breakdown the triangle and invalidate the bullish expectation. This brings 29842 into the picture, with 29255 and 28746 lining up as additional targets to the south.

On the flip side, a breakout above the 30358 resistance opens the door towards new price highs, with the vertical acquisition of price expected to take the Dow towards the 31158 resistance, where the 78.6% Fibonacci extension is expected to be.