On the daily chart below for the Dow Jones, we can see that the price recently broke below the key 33528 support, but the sellers couldn’t sustain the bearish momentum as the NFP report gave the market soft landing vibes due to a resilient and strong labour market, the expected moderation in inflation and the likely pause in rate hikes from the Fed The Fed "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of "The Fed" is a short-hand that refers to the Federal Reserve or Federal Reserve System, the central banking system of the United States. Traders often discuss the actions of the Fed, primarily interest rate decisions, as they significantly impact all financial markets.The Fed shouldn't be confused or substituted with the term "the Feds" and doing so tells everyone you're a total noob. The term "the Feds" refers to US Federal law enforcement, including such agencies as the FBI (Federal Bureau of Read this Term in June.

In fact, we saw a strong rally on Friday after the report and the price now is consolidating a bit before another likely rally in the next few sessions.

Dow Jones Technical Analysis

On the 4 hour chart below, we can see that the NFP report caused the price to break above the trendline and the 33538 support turned resistance. The movement was fast though, and the price has overextended a bit as depicted by the distance from the blue short period moving average. In such instances, the price generally consolidates or pulls back before resuming the original trend. We can see that a good spot for another entry for the buyers would be the 33538 support where we can find confluence with the 38.2% Fibonacci retracement level and the red long period moving average.

In the 1 hour chart below, we can see that the price is consolidating near the 33800 level. As mentioned earlier, a pullback to the 38.2% Fibonacci retracement level would be a nice entry point for the buyers. On the other hand, the sellers will want to see the price to break below the 33538 support and the Fibonacci level to start piling in and target a new lower low. The big event this week is the US CPI report on Wednesday and it’s likely that a hot report would be bearish for the market, while a cold one bullish.