Equity Analysis and News Dow Jones Industrial Average: Trend Remains Moderately Bullish DAX: Bearish Sequence Brings July Lows in Focus Dow Jones Industrial Average: Trend Remains Moderately Bullish Another week of gains for the Dow Jones with the index now hovering around the 26,000 level. Eyes are on for a weekly close above 26,000, which will likely confirm that the uptrend in the index is still intact. Alongside this, the Dow Jones is still playing catch up relative to its US counterparts, which have hit record highs.
Support for the Dow Jones is seen at 25850, whereby the 76.4% Fibonacci retracement of the equity market correction seen in Q1 18. Consequently, the Dow Jones remains moderately bullish above 76.4% Fib level, despite the market jitters sparked by the increase in trade war tensions.
Dow Jones Price Chart: Daily Time Frame (February-September 2018)
DAX: Bearish Sequence Brings July Lows in Focus Gains in the DAX petered out after rejecting the trendline from the June high, while resistance at 12643, which marks the 50% fib level from the 13184-12102 fall also held firm. Momentum indicators suggest that the bias is on the downside. Support at 12350 has curbed an extension to the recent losses for now, however, a firm break below could likely bring the July lows at 12100 back into focus.
DAX Price Chart: Daily Time Frame (April-September 2018)
IG CLIENT SENTIMENT BEARISH The shows56.5% of traders are net-long. We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Germany 30 prices may continue to fall.
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