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DJIA Market Update

12/15/2022 1:10 PM

The Dow Jones is correcting in a local trend, trading at 34050.0. Volatility in the US stock market in the evening trading the day before reached the highest levels since the end of October, the reason for which was the last meeting of the US Federal Reserve this year.

Despite the fact that analysts assumed a rate hike of 50 basis points, investors still reacted quite actively to the factual confirmation of this from the regulator. In addition, the statement of the Chair of the Fed, Jerome Powell, that the rate of adjustment of the value is not so important, and the decision to raise or lower the value will be made each time separately, was received positively. Investors hope that now the debt burden on companies will no longer rise as sharply as it has been throughout the autumn.

Stock quotes of the pharmaceutical company Moderna Inc. soared from 155.0 dollars to the current 209.0 dollars since the start of the week after reports that tests of a new cancer vaccine being developed jointly with Merck & Co. showed positive results.

In addition, it is worth noting the almost zero reaction to the decision of the US Federal Reserve from the bond market. Almost the entire line of US Treasuries is trading at yesterday's levels, and only the popular 10-year bonds are symbolically down 0.06%.

The growth leaders in the index are Merck & Co. (+1.24%), Boeing Co. (+0.60%), Procter & Gamble Co. (+0.39%).

Among the leaders of the decline are Goldman Sachs Inc. (-2.25%), American Express Co. (-2.16%), Intel Corp. (-1.64%).

On the daily chart, the index quotes continue corrective dynamics, reaching the resistance line of the global Expanding Formation pattern.

Technical indicators hold a buy signal, which has begun to strengthen: the range of EMA fluctuations on the Alligator indicator expands in the direction of growth, and the histogram of the AO oscillator is forming new ascending bars in the purchase zone.

Support levels: 33500.0, 32500.0. | Resistance levels: 34440.0, 35370.0.

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