Market Worries: Dow Futures Drop 135 Points
Dow futures decline, Middle East conflict adds to concerns.
U.S. stock futures fell on Monday as worries about high inflation and rising interest rates were compounded by the intensifying violence between Israel and Hamas.
Dow Futures contract dropped 135 points, or 0.4%.
Wall Street was already in a precarious situation as investors dealt with dual concerns about inflation and high-interest rates. These worries were exacerbated by data released last week that revealed a higher-than-anticipated jump in the number of jobs added by the American economy during the month.
Following Israel’s declaration of war in response to an unprovoked strike by the Islamist militant group Hamas, which shook up world markets, the Dow Jones futures fell by roughly 200 points on Monday morning.
When Hamas militants launched the worst attack on Israel in fifty years on Saturday, moving fighters over the Gaza border and into southern Israel, tensions in the Middle East soared. Israel retaliated by waging war on Hamas and carrying out reprisal attacks against the Palestinian population, completely unprepared.
Due to Columbus Day, the bond market is closed on Monday. The 10-year U.S. Treasury note reached a record high on Friday before settling at 4.78%.
DOW JONES Technical Analysis Daily charts:
Technical Overview
Dow Jones is currently trading within a down channel.
Dow Jones is positioned below the 20&50 Moving Averages (SMA).
The Relative Strength Index (RSI) is in the neutral zone, while the Stochastic oscillator suggests a positive trend.
Immediate Resistance level: 33544.56
Immediate support level: 33341.50
How to trade DOW JONES
After a sudden increase, the price of the Dow Jones encountered resistance, and it has been sharply dropping ever since. Since the Dow Jones is currently trading around a support level, a further decline is expected if this support breaks down.
TRADE SUGGESTION- STOP SELL – 33270.87, TAKE PROFIT AT- 32873.58, SL AT- 33544.56.