Dow Industrial Average has given up its gains and currently trades down -98 points or -0.3% at 33529
The S&P index is still up 5.7 points or 0.15% at 3900.77. The NASDAQ index is up 96.3 points or 0.91% at 10665.03, but both are well off highs (and getting close to unchanged for the S&P).
The decline in the Dow is being led by
- Merck down -3.86%,
- Johnson & Johnson down -2.66%,
- Amgen -2.30
- Boeing down -2.22%, and
- Travelers down -2.20%.
Leading the gainers is:
- Salesforce, up 4.90%
- Intel up 2.25%
- Goldman Sachs up 1.49%
- Dow up 1.38%
Looking at the hourly chart, the index moved above its 200 hour moving average (green line in the chart above) on Friday but is moving back down toward that moving average level currently at 33478.34. The low price for the day reached 335521.
A move back below the 200 hour moving average would hurt the bullish bias from a technical perspective, and after looking toward the rising 100 hour moving average at 33124.64. However holding it on the correction in contrast could lead to a snapback rally going forward.
Of course the CPI data to be released on Thursday will be a key event. The most recent high price from December 13 reached 34665.52 after better-than-expected CPI was released on that day. However the momentum could not be sustained and the price closed that day at 34116.62.
This article was written by Greg Michalowski at www.forexlive.com.