Dow Jones Industrial Average “Likes” the NFP Report
Talking Points
–
Dow Jones Industrial Average
(DJIA) opens higher on a robust jobs report
-DJIA has nearly retraced all of the post-Brexit losses
-Anticipating a break higher above 18,167 towards 18,575 and 19,700
Dow Jones Industrial Average opens strong today after a better than expected jobs report. The expectation was for 180k non-farm payrolls added.
The figure came in at +287k
suggesting the US economy is doing quite well. The odds of a
rate hike
from the Fed have increased a little, but there is still a 75% of no hike prior to the end of 2016. As a result US30, a
CFD which tracks the DJIA
, is trading higher compared to yesterday’s levels.
Chart prepared by Jeremy Wagner
From a technical perspective, we have been watching the 18,167 level which marks the high from April 20. A break above this level adds more weight to the probability of a strong move higher towards 19,700 and possibly 21,000. US30 is about to erase the post-Brexit losses and is currently trading near 18,070.
If a break above 18,167 does take place, there is minor resistance we’ll be watching near 18,575. It is possible a rejection takes place prior to 18,575 and sends US30 back down towards 17,000. We consider this to be lower probability, but a scenario to keep an eye on. 15,503 is the line in the sand for all bullish outlooks.
Suggested Reading:
Dow Jones Industrial Average Punches Back After Brexit Collapse
Interested in a longer term outlook for equities?
Download our quarterly forecast here
.
Having trouble with your trading? Check out our
Traits of Successful Traders research
.
—Written by Jeremy Wagner, Head Trading Instructor, EDU
Follow me on Twitter at
@JWagnerFXTrader
.
See Jeremy’s recent articles at his
Bio Page
.
To receive additional articles from Jeremy via email, join Jeremy’s
distribution list.
