Current trend

The Dow Jones Index is correcting in a local trend, trading at 37297.0 and receiving support from macroeconomic statistics.

Today, data on the American housing market will be published: analysts suggest that the Building Permits issued in November will be 1.470 million, which is inferior to 1.498 million a month earlier, and Housing Starts may decrease from 1.372 million to 1.360 million, which will allow US Federal Reserve officials keep the interest rate at the current level.

The main factor behind the growth of the stock market remains the situation in the bond market: 10-year bonds are trading at a rate of 3.943%, which is significantly lower than 4.238% recorded on Friday, the yield on 20-year bonds is 4.224%, down from a recent high of 4.524%, and the 30-year bonds are holding at 4.048%, down from a recent high of 4.337%.

The growth leaders in the index are Procter & Gamble Co. ( 1.55%), Walmart Inc. ( 1.46%), American Express Co. ( 1.27%).

Among the leaders of the decline are Boeing Co. (-1.46%), 3M Co. (-1.05%), Goldman Sachs Group (-1.03%).

Support and resistance

On the daily chart, the index quotes continue their upward trend, preparing to update the next high of the year at around 37400.0.

Technical indicators hold a steady buy signal, which continues to strengthen: the EMA fluctuation range of the Alligator indicator is expanding actively, and the AO histogram forms new upward bars, moving away from the transition level.

Support levels: 37000.0, 36300.0.

Resistance levels: 37400.0, 38100.0.

Trading tips

If the local growth continues, long positions that can be opened if the price overcomes the channel resistance at 37400.0 with a target at 38100.0 and stop-loss at 37100.0 will be relevant. Implementation time: 7 days and more.

If the asset reverses and continues declining and the price consolidates below the local support level of 37000.0, short positions can be opened with the target at 36300.0. Stop-loss — 37300.0.