Market News & Analysis

US30 (Dow) setting positive price action

Jan 7, 2019 | CFD News

The US30 made its last 2018 low on the 26th of Dec before positive consumer spending numbers jolted buyers into a record one rally that saw the US30 rally 1100 points. The market made further moves higher before starting the year with two declines. The short-term trend break looked to be under pressure as sellers came back in with what looked could turn into a potential low test. 

Enter last Friday’s NFP data which soundly beat expectations showing continued U.S job growth, on the back of the jobs data Fed Chair Powell’s comments hinted at possible future rate holds sending buyers back into equities. The Dow jumped by 746 points setting up a new higher low which for now is confirming the trend break and starting to mark in a new short-term uptrend. 

While these points are positive traders should still be wary as these moves have been mainly set-up during low volatility trade. This week’s China -U.S trade talks could be a big key to the lower high holding. We would like to see buyers hold the higher low to maintain any buyer bias. The trade talks will be held in Beijing on Jan 7-8.

Daily US30 Chart

Good Trading from EightCap.


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