TECHNICAL ANALYSIS
On the daily chart, it's evident that the Dow Jones experienced a bounce around the 32900 level yesterday, primarily driven by a miss in the ADP report. However, the overall bearish trend remains intact, as the price consistently forms lower lows and lower highs, and the moving averages have crossed to the downside. In the event of a more significant correction, sellers may find a favorable position to enter around the 34000 resistance level. This level aligns with the trendline and the 61.8% Fibonacci retracement level. Currently, the target for sellers remains at the 32597 level. Analyzing the 1-hour chart, it's worth noting that the recent downward movement in the Dow Jones is diverging from the MACD indicator. This divergence often indicates weakening momentum, which can be followed by pullbacks or even reversals in price direction. In this particular case, a pullback towards the 33260 level is expected, where sellers might become active. However, if the price continues to rise and breaks through the trendline, it would provide confirmation of a potential reversal, allowing buyers to target the 34000 resistance level.
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