Dow Jones Industrial Average "Likes" the NFP Report
-Dow Jones Industrial Average (DJIA) opens higher on a robust jobs report
-DJIA has nearly retraced all of the post-Brexit losses
-Anticipating a break higher above 18,167 towards 18,575 and 19,700
Dow Jones Industrial Average opens strong today after a better than expected jobs report. The expectation was for 180k non-farm payrolls added. The figure came in at +287k suggesting the US economy is doing quite well. The odds of a rate hike from the Fed have increased a little, but there is still a 75% of no hike prior to the end of 2016. As a result US30, a CFD which tracks the DJIA, is trading higher compared to yesterday’s levels.
Chart prepared by Jeremy Wagner
From a technical perspective, we have been watching the 18,167 level which marks the high from April 20. A break above this level adds more weight to the probability of a strong move higher towards 19,700 and possibly 21,000. US30 is about to erase the post-Brexit losses and is currently trading near 18,070.
If a break above 18,167 does take place, there is minor resistance we’ll be watching near 18,575. It is possible a rejection takes place prior to 18,575 and sends US30 back down towards 17,000. We consider this to be lower probability, but a scenario to keep an eye on. 15,503 is the line in the sand for all bullish outlooks.
Suggested Reading: Dow Jones Industrial Average Punches Back After Brexit Collapse
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---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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