improving 40 basis points to 49.4 and the Services PMI remaining flat at 52.3. July Durable Goods Orders are expected to arrive at -4% compared with June’s 4.6%.The Dow Jones Industrial Average, one of the oldest stock market indices in the world, is compiled of the 30 most traded stocks in the US. The index is price-weighted rather than weighted by capitalization. It is calculated by summing the prices of the constituent stocks and dividing them by a factor, currently 0.152.
Still, breaking below that significant trendline should give investors pause. It could signify a further deterioration that leads the DJIA down to support at 33,700 – a mere 1.7% drawdown. Just as well, it’s possible that the 34,250 prior resistance level reinforces the index. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.