Skip to content
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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Dow Jones Price Falls to Key Trendline as Fed Enters Taper Talk Window

Dow Jones Price Falls to Key Trendline as Fed Enters Taper Talk Window

Peter Hanks, Strategist

Dow Jones Price Forecast:

Dow Jones Price Falls to Key Trendline As Fed Enters Taper Talk Window

The Dow Jones is at risk of breaking beneath a key trendline following the June FOMC meeting. In the corresponding press conference, Fed Chairman Jerome Powell revealed the central bank has effectively entered the taper talk window which, in addition to the revised dot plot, culminated in a relatively hawkish overall tone. As a result, the Dow Jones, Nasdaq 100 and S&P 500 fell lower as rate hike projections moved forward.

Dow Jones Price Chart: Daily Time Frame (January 2020 – June 2021)

dow jones price chart daily

While the major indices all suffered losses, the Dow Jones appears to be on the brink of a major technical break. The trendline in question is derived from the index’s pandemic low in March 2020 and has influenced price throughout the time since. While the Nasdaq 100 and S&P 500 have since broken beneath their respective trendlines, the Dow enjoyed a supplementary level of support derived from various market peaks throughout the last fifteen months. Until Wednesday, the March trendline was unbroken since its inception.

Dow Jones Price Chart: 1 - Hour Time Frame (May 2021 – June 2021)

dow jones hourly price chart

As it stands, the convergence of support around 34,000 is at risk of opening the door to further losses after price pierced the March trendline. Alongside the two rising trendlines is also the index’s 50-day simple moving average which could serve as resistance should price fall beneath. If bulls can mount a recovery and retake the rising trendline, further declines might be avoided in the short term. That said, the intraday break of the level has dealt irreparable damage to the trendline and will see its influence reduced going forward.

How to Short Sell a Stock When Trading Falling Markets

Either way, the longer-term outlook for the major indices remains constructive. While the Fed’s findings may create shorter-term headwinds for the major indices, hawkish policy moves are grounded in improvements in the underlying economy which should help drive equity growth far into the future.

The Quiz
Discover what kind of forex trader you are
Start Quiz

Unfortunately for the more active traders, the passing of the June FOMC meeting may leave markets grasping for catalysts as the Summer Doldrums arrive and price action dries up. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for

Contact and follow Peter on Twitter @PeterHanksFX

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