Bad News For the Dow
DJIA Morning Update 12-6-2018
The news this morning for the DJIA has not been good:
- ADP Nonfarm Employment Change 179K vs. 196K forecast
- Huawei Finance Chief Arrested for possible violations of Iran sanctions and may be extradited to the US
- Oil prices have been sliding which may be a precursor to an economic recession
- Japanese Yen has been strengthening in what may be viewed as a flight to safety as people seek shelter from market and geopolitical turbulence
Futures Fair Value indicates that the DJIA could open down nearly 450 points from the previous close of 25,027.07.
If downward pressure continues it may well be worth watching the 24,576 level which represents the line between the 7th and 8th levels of the DJIA price. The long-term DJIA range runs from 10,240 to 28,672.
The 7th and 8th levels of the DJIA are:
- 7 - 22,528 - 24,576
- 8 - 24,576 - 26,624
Should the DJIA come off lows then 24,832 and 25,088 would be the next higher levels to watch for. A monthly close below 25,088 would indicate a more bearish market. The DJIA has been perched near the top of its long-term range with the all-time high being 26,951.81.