Current trend
Dow Jones index is trading near the support level of 8/8 Murrey or 25000.0. If there would be a breakdown and consolidation below this mark, the next target is 24218.8.
The index is pressured by data on inflation that was published last week and showed a slight increase of 0.4% in January against a forecast of 0.2%. In view of this, the yield on Treasury bonds also increased and is now above 2.80%, which led to additional pressure on the stock markets. According to analysts of the largest banks, if the premium exceeds 3%, it can cause even stronger sales and corrections.
The stock market has been at its maximum for a long time, and additional drivers are needed for a new strong upward movement; taking into account the tightening of monetary policy, the probability of growth is significantly reduced. Evaluating all this, we can say that the external background is not in favor of growth.
Today, a report on profits and losses of a number of American companies, such as Home Depot and Walmart, will also be published.