Loonics_Trading

The Dow Jones faces to a decisive crossroads

Short
DJ:DJI   Dow Jones Industrial Average Index
Erratics movements and high amplitudes due to increased volatility are now increasingly common on the indices; Especially since President Trump's accession to power reveals to be a powerful dynamiter of American Markets. The oldest index of international financial market faces a compression between its last high threshold which was 26 635-26 650 and a slanting rose that joins the same trajectory of low points that were becoming higher and higher from 2017 to now. And that's What motivated my choice of a 3-month weighted moving average (14 one-week periods) to highlight the impacts of the most recent Dow Jones fluctuations as well as a six-month exponential moving average, so half-yearly, for Take into account the dynamics of the price and the high amplitudes of the DJIA 30 which we had in the first part of the year 2018. We all remember the violent fall or deep breath of February 2018. So in the face of such a finding, and also in view of the bearish spectrum that has seized the American markets, the DJIA30 is more than ever at the crossroads. It is compressed between its last highest (orange horizontal line) and its medium-term oblique (yellow line). From my modest point of view, this stabilization or this wait is based on the future expectations of the CPI (Consumer Price Index) which will be published next Week. Unless there is a powerful catalyst (bullish) that will turn everything upside down. Market players do not know whether they should rejoice in a figure that is expected in stabilisation or even neutral or should it be disappointing so that the courts fall abruptly to the green space that coincides with the semi-annual moving average, because all of even, the DJIA30 will remain bullish as long as it is above its quarterly and semi-annual moving averages, and again, as long as it stays in its ascending channel. But, I'm bearish on the clues on the medium and long-term...

Francois Abley
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