DOWJONES
Dow Jones is trading below the $52,800 resistance area, and prices are likely to move sideways between the aforementioned resistance and the $51,650 support area in today’s trading.
|
Support |
51650 | 51000 |
| Resistance | 52800 |
53700 |
Dow Jones declined as selling pressure returned to U.S. equities amid rising oil prices and elevated Treasury yields, while investors awaited the Federal Reserve’s decision with strong expectations of an interest rate hike. The 10-year Treasury yield moving above 5% added further pressure on equity valuations, while developments in the Middle East and higher energy prices kept inflation concerns in focus.
Bank of America also maintains a cautious outlook on U.S. equities, setting a 12-month target of 7,800 for the S&P 500, implying limited upside of around 2% from current levels. The bank also sees scope for a market pullback, particularly as stocks have experienced only one 5% correction so far this year, which could offer investors a more attractive entry point if additional pressure emerges.
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