Dow Jones: A Correction To Be Concerned About?
MarketPulse | Sep 22, 2021 01:56AM ET
Equity markets have been struggling to gather upside momentum over the last month and those nerves showed on Monday when the market sold off, leaving investors feeling rather nervous about what lies ahead.
While the move saw the Index break significantly below the 55/89-day SMA for the first time in almost a year, it quickly reversed course a couple of times in the interim. It has still only corrected a little over 5% from its highs so it’s too early to worry.
The big test may come very soon, with the 200/233-day SMA falling around 33,000, which roughly coincides with previous areas of support and resistance. A significant move below here could be more concerning.
Should the index rebound off that level, 35,000 will be a major level of interest, falling around the 55/89-day SMA it previously broke below, with a rotation off this level being a bearish confirmation signal.
The Fed will have a big role to play on Wednesday as it announces its September monetary policy decision, alongside its latest projections.
Original Post
/h2
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.