The Dow Jones is correcting in a local downtrend, trading at 31122.0.
Tomorrow's interest rate decision by the US Federal Reserve will have a key impact on the dynamics of the US market. There is no doubt that the value will be raised, as officials from the regulator, including its Chair Jerome Powell, have said that they are ready to do anything to bring inflation back to 2.0%, even if this has a negative impact on the economy. At the moment, most experts suggest a rate increase of 75 basis points.
Yesterday, auctions were held on the US bond market to place short-term bills: the rate of return on 3-month bills rose to 3.270% from 3.075%, and on 6-month bills it went up to 3.780% from 3.465% shown at the last placement. In turn, 10-year bonds also continue to rise, reaching a yield of 3.485%, which is the maximum value of this year.
The growth leaders in the index are Nike Inc. (+2.97%), Apple Inc. (+2.51%), Home Depot Inc. (+1.61%).
Among the leaders of the decline are Merck & Company Inc. (-1.23%), Johnson & Johnson (-0.79%), Walgreen Boots Alliance Inc. (-0.35%).
Quotes of the index continue corrective dynamics, falling towards the low of the year. Technical indicators are holding a sell signal, which is weakening: the range of EMA fluctuations on the Alligator indicator is quite wide and the histogram of the AO oscillator is forming new descending bars, being in the sales area.
Support levels: 30860.0, 29770.0. | Resistance levels: 31570.0, 32480.0.