On the daily chart below, we can see that the price action is very confusing with no clear direction. Nonetheless, the price sold off from the 34477 resistance zone with the moving averages crossing to the downside in a possible sign of a trend switch.

As the price rallied after the strong NFP report, the sellers leant on the red long period moving average Moving average A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot Read this Term and the price fell again. The economic data has been giving conflicting signals lately, so the technicals are more helpful at the moment to get some hints from the market.

Dow Jones Technical Analysis

On the 4 hour chart below, we can see that a resistance was formed at the 33840 level, so the buyers will eye that one as the target and aim to break above it to extend a possible rally towards the 34477 resistance. Given that the bias is still bearish, the sellers should pile in again once the price breaks below the recent low at 33180 level and target the support at 32684.

In the 1 hour chart below, we can see that the market fell yesterday after the big miss in jobless claims but rebounded soon after. The price is now approaching a minor trendline and a break above should give the buyers some confidence for a rally into the 33840 resistance, while the sellers may want to lean on this trendline to target the break of the recent low. Today the only data on the docket is the University of Michigan consumer sentiment survey.