The Dow Jones Industrial tumbled yesterday hitting both our supports targets at 32610 and 32400 despite a drop in the yield on 10-year Treasuries for the third day in a row to 1.60%. Bonds and the US dollar surged higher after reports that President Biden plans more measures to spur growth namely a new $3 trillion dollar infrastructure bill. However, stocks fell as investors worry that the new spending will be accompanied by tax increases on corporations and the wealthiest Americans. Today, traders’ reaction will depend on the 32400 support level. If it holds, we may witness dip buying interest back to 32610 resistance level ahead of US PMI data due to be released at 1345 GMT.
Support: 32400/ 32296
Resistance: 32610 / 32800
