Dow Jones index is insignificantly decreasing due to the fall of the high-tech sector stocks, which usually have a better record. Microsoft lost around 3.5%, Alphabet decreased by 1.29%. The nearest support level is at 23922.8, in case of breakdown the next target will be the level of 6/8 Murray or 23750.0.
As for the tax reformation, Senate approved the draft low, and the agreement of the House of Representatives is needed, after which the low will be addressed for USA President’s signature. 51 senators supported the reformation, as 49 were against it. The reformation is criticized for being profitable for rich Americans and corporations only, and tax cut from 35% to 20% can increase the budget deficit by some trillions USD. On the other hand, a number of experts supposes that the vacated money supply can be used for the extending of business and additional investments in the country.
Today the traders are focused on ADP Employment Change release: the fall to 185K is expected.
Support and resistance
Stochastic is at the level of 15 points and reflects the possibility of correction.
Resistance levels: 24473.8, 24800.0.
Support levels: 23922.8, 23750.0.
Long positions can be opened at the support level of 23922.8 with the target at 24106.5 and stop loss at 23750.0.
DJIA index of the American stock exchange
|Support levels||23750.0, 23922.8, 24473.8, 24800.0|
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