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DJIA Market Update
3/6/2023 1:00 PMThe Dow Jones is correcting in a local trend, trading at 33427.0.
Volatility in the US stock market increased again, reaching its peak in trading on Friday against the background of the rhetoric of a number of experts regarding possible actions by the US Federal Reserve at a meeting on March 22. The President of the Federal Reserve Bank (FRB) of Atlanta, Rafael Bostic, said that the regulator is ready for a sharper increase in the cost of borrowing than previously planned. The official's words led to a change in the balance of opinion in futures on the expected interest rate: the probability of an increase in value by 50 basis points is now estimated at 28.4% after 25.0% at the end of last week.
In turn, the bond market on Friday updated all-time highs: the yield on 10-year Treasuries exceeded 4.000% for the first time since November last year, but then a correction followed and now the figure is held at 3.944%, which contributed to the positive dynamics in the stock market. Today, auctions are scheduled for the placement of 3- and 6-month treasury bills, which may also have an impact on the stock index quotes.
The growth leaders in the index are Apple Inc. (+3.51%), Boeing Co. (+2.40%), Goldman Sachs Group Inc. (+2.29%).
Among the leaders of the decline are Coca-Cola Co. (-0.47%), Verizon Communications Inc. (-0.39%), Dow Inc. (-0.21%).
On the daily chart, the index quotes continue their corrective dynamics, being in the middle of the local downward channel.
Technical indicators are ready for a reversal and have almost given a new buy signal: the fluctuation range of the Alligator EMAs has narrowed almost completely, and the AO histogram is forming new correction bars, being below the transition level.
Support levels: 33000.0, 32000.0. | Resistance levels: 33700.0, 34600.0.