Dow Jones
The Dow Jones Industrial average is surging higher this Friday, as upbeat US Retail Sales figures helped lift the mood of the US markets even more. The Dow is trading at 27875 as at the time of writing and is starting to pursue recently attained all-time highs of 27,892 which were hit this morning by the Dow Jones Futures.
According to the data from the US Census Bureau, October retail sales in the US climbed by 0.3%, which was better than the expected figure of 0.2% and a great improvement on September’s -0.3% figure. However, the Core Retail Sales only registered at +0.2%, which as below the market expectation of 0.3%. It still beat last month’s figure of -0.1%.
In dissecting the Retail Sales report, it is seen that spending on big-ticket household items actually fell. This may present some concern for retailers who are preparing for the holiday shopping season to be ushered in by Black Friday and Cyber Monday.
The improvement in the core component of the report also dampens the odds of a Fed cut in the next meeting, as it tallies with the inflationary trends seen from recent CPI data.
The positive market response to the retail sales data has led to bullish price action on the Dow. This has pushed the asset temporarily above the bullish flag formation on the hourly chart. This move also breaks above the R1 pivot and opens the way to the R2 pivot price level of 27934.67, which takes the Dow to a new all-time high.
On the flip side, a retreat below 27,861 R1 pivot level takes the price action back into the flag, where it may range trade for some time. If price is able to push down below the flag, it targets the central pivot at 27764.