- summary:
- Dow Jones on a rugged journey in a week consumed on “Freedom Day” and a multiple unknown in American commercial policy.
Dow Jones (Indexdjx: This decline follows the injection of new negative trade tariffs by US President Donald Trump during the weekend, adding pressure on stocks.
The index has been in the declining direction since mid -February and lost 2.4 % in the last five trading sessions. President Trump said on Sunday that “Freedom Day” on April 2 will witness that all countries are within the jurisdiction of the mutual tariff in the United States. This was a major shift in his initial position that targeted the two countries with a trade surplus on the United States.
Besides mutual tariffs, April 2 can also see that Trump announces customs duties against semiconductors, medicines, as well as 25 % definitions on cars that were unveiled last week. The expansion of commercial tariffs may have a stronger impact on the wider global economy than previously thought, which raises the negative risks of traders.
As a result, the coming days will witness a decrease in purchase sizes in stock markets. At that time, the NFP salaries will be issued on Friday and will provide evidence of the American economy path.
Dow Jones Index expectations
The momentum indicates that the Dow Jones index indicates that the downside is likely to prevail if the index fails to break the axis mark 41,767 points. With sellers control, DOW may find its initial support at 41,242. The momentum extending down to less than this level will collapse and test the second support at 40,827.
On the contrary, going over 41,767 will control buyers. He can see the index recall the level of 42,224 points. In addition, a stronger upward batch will be broken above this level and nullifying the narrative of the negative side. Also, this momentum can be sent to the top to test $ 42,627.
