LIVE MARKETS Dow Industrials: Six-straight or sink?

  • 12/29/2021
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U.S. equity index futures ~flat Euro STOXX 600 index slips ~0.1% Dollar ~flat; gold, crude, bitcoin dip U.S. 10-Year Treasury yield jumps to ~1.52% Dec 29 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com DOW INDUSTRIALS: SIX STRAIGHT OR SINK? (0900 EST/1400 GMT) The Dow Jones Industrial Average (.DJI) has now risen five straight days. That"s its longest streak of higher daily closes since a seven-day run from March 5 to March 15 of this year. That said, with CBT e-mini Dow Futures roughly flat in premarket trade, traders will have to wait to see on which side of the fence momentum will land. On Tuesday, the blue-chip average flirted with its 36,432.22 Nov. 8 record close and its 36,565.73 Nov. 8 record intraday high. The DJI hit 36,527.26 before selling back to end at 36,398.21: DJI12292021 DJI12292021 Since once again using the broken log-scale resistance line from 1929 as a launching pad in early December, and then the 200-day moving average (DMA) as support on December 20, a push to new highs can likely clear the way back up to the resistance line from early 2018, which now resides around 37,050. This line remains an important barrier given that it capped strength in early November. Overwhelming it, however, would suggest potential for the 39,000 area in Q1 2022, if indeed, the S&P 500 (.SPX) more directly challenges its log-scale resistance line from 1929. Click here: read more In any event, given the streak, and resistance at the Dow"s record highs, some pullback would not be a surprise. However, the rising 50-DMA, which ended Tuesday around 35,675, can look to contain weakness. A DJI reversal below more significant support ranging from the 200-DMA, which ended Tuesday around 34,710, to the Dec. 1 trough at 34,006.98, however, will have the potential to signal a major trend change. (Terence Gabriel) ***** FOR WEDNESDAY"S LIVE MARKETS" POSTS PRIOR TO 0900 EST/1400 GMT - CLICK HERE: read more

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