Dow Jones Index Tumbles Again, Mood Remains Downbeat By

© REUTERS – The index continues to post losses as the mood remains pessimistic. The rate hikes are hurting investor confidence, especially given the aggressive direction of monetary policy.

Indeed, further increases are expected for the rest of the year and next year which could further push the stock markets down. In this sense, investors will be watching the economic data and the reactions of the Fed.

Economic data

In terms of economic publications, the German manufacturing PMI index fell to a value of 48.3 points but remained at the level of expectations. The previous period had seen a value of 49.1 points.

In the United Kingdom, the manufacturing PMI improved on the other hand to reach a value of 48.5 points against 47.5 for the estimates and 47.3 over the previous period.

Technical analysis of the Dow Jones

From a technical point of view, the Dow Jones could find resistance around the threshold of 30,000 points. It could also see support around 29500 points.

Finally, note that the technical summary for the Dow Jones shows a “Strong sell” signal in hourly data, and a “Strong sell” signal in daily data.

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