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DOW INDUSTRIALS: SICK AGAIN (0900 EST/1400 GMT)
U.S. equity index futures are tumbling on Monday, dragged down by fears over tighter restrictions on the global economy, as a result of the Omicron variant.
Given action in CBT e-mini Dow futures , the Dow Jones Industrial Average (.DJI) is poised to slide more than 400 points when regular-session trading kicks off.
This relapse is occurring after the blue-chip average failed to register a close above the 76.4%/78.6% Fibonacci retracement zone of its November-December slide at 35,961.87/36,018.16, keeping alive the potential that its December bounce was counter-trend read more :
With early weakness Monday, the DJI can once again threaten its rising 200-day moving average (DMA), which ended Friday around 34,605.
Key support resides at a broken log-scale resistance line from 1929, which now comes in around 34,100, and the Dow’s Dec. 1 low, which is at 34,006.98.
Closing below this support zone can suggest the potential for a much greater decline, given that trend line has subsequently contained Dow weakness since it was first overwhelmed in March.
A reversal back over the 50-DMA, however, which ended Friday around 35,545, can see the Dow make another go at the Fibonacci barrier. read more
FOR MONDAY’S LIVE MARKETS’ POSTS PRIOR TO 0900 EST/1400 GMT – CLICK HERE: read more
Terence Gabriel is a Reuters market analyst. The views expressed are his own
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