Thursday’s Technical Outlook for the DJIA (.DIA)

$DIA, $.DJI

The DJIA rose 51 points, or 0.28%, to 18,041.55 after the no tell FOMC policy announcement.

The SP 500 gained 3 pts, or 0.16%, to 2,095.15, the NAS Comp lost 25 points, or 0.51%, to close at 4,863.14 as Apple Inc. (NASDAQ:AAPL) shares dove on its FY-Q-2 earnings miss.

The DJIA rose to a weekly high of 18,084 before fading and finishing  at the above mark.

The daily is showing a modest Bullish tone, as the index continues consolidating within last week´s range and above a Bullish 20-Day SMA, the technical indicators are slowly gaining some strength, but still lack momentum.

Near term, the 4 hours shows that the index advanced above a flat 20-Day SMA, as the Momentum indicator heads north within positive territory, and the RSI turned flat at 58. So, favoring the Northside, on an advance beyond Dow 18,084.

Commentary

Wednesday, when it came to the DJIA at 18041.55, +0.28%, the FOMC meet almost turned out to be a non-event. The positive closing keeps the trend up, but the narrow range of 19800-18100 is yet to see a breakout for the next directional move. The bias remains cautiously Bullish for 18200-300 but the chances of a sudden reversal cannot be entirely ruled out, thus increasing the risk profile.
As I write this report at 2:45a EDT the DJIA mini June futures are trading of 99.00 pts at 17,864.00

Support marks:17,982 17,919 17,826
Resistance marks: 18,084 18,165 18,220

Stay tuned…

Paul Ebeling

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