News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/rws9LHJV3E
  • RT @FxWestwater: Japanese Yen Forecast: JPY Crosses Eye BoJ, CPI as Haven Flows Bolster Yen Strength Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/jpy/2021/09/18/Japanese-Yen-Forecast-JPY-Crosses-Eye-BoJ-CPI-as-Haven-Flows-Bolster-Yen-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
Dow Futures Drop on Weak Jobs Report

Dow Futures Drop on Weak Jobs Report

Jeremy Wagner, CEWA-M, Head of Education

Talking Points

-Dow Futures sell off after a weak Non-Farm Payroll report

-Dow Jones Industrial Average currently sits on top of a confluence of technical support

-Though a bounce is likely, medium term bulls may want to patiently wait for lower levels near 17,000

The April jobs report in the US disappointed with a +160k print which sent Dow Futures down in the minutes following. Though the Non-Farm Payroll report was less than +200k expected US30, a CFD which tracks the DJIA, is now entering one of the support zones described on Wednesday.

Support Zone 1 from 17,524-17,575

There are 3 different types of analysis supporting this zone.

  1. Previous wave 4 near 17,524 (this is a common attraction point in a correction)
  2. 23.6% retracement near 17,532 (this is considered the be a minimal retracement level)
  3. Top of a 12 month trend line near 17,575

Taken from “Dow Jones Industrial Average Trades Down 3 of the Last 4 Days” – Wednesday May 4

Now that we are in this zone, let’s look at the structure and determine if it holds or whether we trade down to the support zone 2 mentioned Wednesday.

The structure lower from April 20 appears to be corrective in nature. That would give the bulls a wind to their sail in anticipating higher prices down the road.

However, this current correction lower has only minimally retraced in price and the retracement has been shallow in time. Therefore, look for lower levels such that a deeper retracement will eat up price and time. Or, consider that price may trade sideways simply eating up time.

Therefore, we consider it higher probability that price will eventually dig lower to the support zone 2 listed in Wednesday’s report.

Dow Futures Drop on Weak Jobs Report

Created using TradingView.com charts

Though we are anticipating price action in the US30 to dig into 16,900-17,100, it would not be out of the realm of possibilities to see US30 trade up to 18,340 and still be within the bounds of the sideways “time eater” described above.

There is enough support in the current zone near 17,570 that a bump higher could be anticipated for shorter term traders. For the medium term bulls, the better risk to reward ratio opportunity is at lower levels described on Wednesday.

The above is a shorter term forecast for Dow Jones. If you are interested in our Q2 2016 equities forecast, download it here.

We studied millions of live trades and produced a Traits of Successful Traders Research. Learn these discoveries with a free download.

---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU

Follow me on Twitter at @JWagnerFXTrader .

See Jeremy’s recent articles at his Bio Page.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES