off-the-wire

LIVE MARKETS-Dow Industrials: Leveling up ahead of the Fed

Kitco Media
By Reuters
Published:
Updated:
Reuters



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U.S. equity index futures rise slightly ahead of Fed decision

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U.S. ADP Apr national employment 296k vs 148k est

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Euro STOXX 600 index up ~0.3%

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Dollar, gold, bitcoin decline; crude down ~3%

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U.S. 10-Year Treasury yield falls to ~3.41%

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DOW INDUSTRIALS: LEVELING UP AHEAD OF THE FED (0900 EDT/1300 GMT) Ahead of the results of Wednesday's highly anticipated Fed meeting, the Dow Jones Industrial Average has become increasingly volatile:


Last Wednesday, daily volatility close-to-close ended at its lowest level since the DJI's Jan. 4, 2022 record-high finish. This indicator ended Tuesday at a one-month high.


For nearly three weeks now, the Dow has been oscillating around trendline resistance from its Jan. 5, 2022 record intraday high. With its 33,684 Tuesday close, the DJI ended back below this line, which should reside just shy of 33,800 on Wednesday. In the wake of April ADP private employment coming in well above estimates, e-mini Dow futures are suggesting the DJI is poised to edge up at the open. Thus, the line will present a hurdle in early trade. In any event, traders are braced for the potential for even greater volatility as the market ultimately digests the results of the Fed meeting and chair-Powell's press conference. On strength above the resistance line, Monday's high was at 34,258, and just above here are the January-February highs packed in a tight range at 34,331, 34,335 and 34,342. The December 13 high was at 34,712. On a break below last Wednesday's 33,235 low, the 50-day moving average (DMA) ended Tuesday around 33,065. The 200-DMA ended around 32,685. Meanwhile, both the S&P 500 and Nasdaq Composite are also just shy of key chart hurdles.


(Terence Gabriel)
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<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ DJI05032023 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Terence Gabriel is a Reuters market analyst. The views expressed are his own)

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