The three most popular U.S. indices got over the period that were recording continuously all-time record highs and entered a retracement phase. Dow Jones Industrial average is down more than 1.20% to 20,372.00 so far, in April, while it slipped 0.72% in March after its top at 21,171.40. S&P 500 sank over 1% to 2325.62 in April, coming from marginal losses the previous month. The two indices have a similar performance which accelerated to the downside in the current period of earnings releases.
Dow Jones Industrial Average – Technical Outlook
The Dow Jones Industrial Average started a retracement after the bounce off the fresh all-time high at 21171.40 which recorded early in the previous month. Since March the index plummeted almost 800 points and posted a two-month low at 20,372.00 which overlaps with the 100-daily SMA. Currently, the price is approaching the 23.6% Fibonacci retracement level with low at 17,060.00 and high at 21,171.00, near 20,203.00.
However, if the price rebounds on the aforementioned SMA, we would expect a run towards the 20,890.00 resistance barrier. The technical indicators seem to be in contrast. The Relative Strength Index (RSI) is holding in the negative territory and is sloping to the upside whilst the MACD oscillator plunged below its trigger line with strong momentum.
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