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Market Update: US30 Sellers Making a Move?

July 8, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re taking a look at the daily US30 as sellers press a new move after holding resistance.

Something seems up with global indexes today, sellers have been very active with solid losses coming in Asia and then in Europe. US futures have also followed a bearish sentiment with strong falls tracking the sessions. Uncertainty in the economy was a takeaway in the FOMC minutes as was the message of tapering.

Asset purchasing has been a great driver for the current rally. Could continued inflation, rate hikes and tapering become its Achilles heel?

Looking at the US30 (the CFD following the price of Dow Jones Index) below we can see the strong selling that happening at this stage today. 34,845 key resistance remains the roof for buyers moving forward. This level has been in place since May and has resisted several attempts from buyers like this one from early June. While this resistance remains the Dow continues to trade out of trend as we can see price has moved a fair way out of the main uptrend. The last push higher by buyers was stopped there and now we’re watching the break of the recovery rally by sellers today.

Dow Jones Daily chart, 8 July 2021

Daily US30 Chart

If we see sellers continue lower we will be looking at the 33,260 area as that stopped the last bear raid. A break of that level and we could be seeing a true turn in momentum.

All times are AEDT.