Current trend

The Dow Jones index is correcting in the local trend at 37683.0, preparing to continue the rapid growth that began in December last year, which may be facilitated by positive macroeconomic data.

Statistics on the index of business activity in the manufacturing sector from the Institute of Supply Management (ISM) will be published today: analysts expect the indicator to rise to 47.1 points in December from 46.7 points a month earlier. In addition, the number of open vacancies in the labor market from JOLTS may rise from 8.733 million to 8.850 million in November, against the background of a significant decrease from 9.350 million over the previous period.

The driver of the upward dynamics of the DJIA price is the situation in the domestic bond market, which has somewhat moved away from the lows due to a break in the operation of trading platforms: 10-year securities are traded at a rate of 3.961%, which slightly exceeds the minimum of December 27 at 3.802%, the yield of 20-year bonds is 4.243%, having increased since the recent minimum value of 4.086%, and 30-year securities are held at 4.083%, above the minimum at 3.951% recorded a period earlier.

The growth leaders in the index are Merck & Company Inc. ( 3,89%), Amgen Inc. ( 3,25%), Verizon Communications Inc. ( 3,13%).

Among the leaders of the decline are Intel Corp. (-4.88%), Apple Inc. (-3.58%), Boeing Co. (-3.40%).

Support and resistance

On the D1 chart, the index quotes continue their uptrend, preparing to update the next high of the year at 37800.0.

Technical indicators hold a stable buy signal, which is ready to continue strengthening: the range of fluctuations of the EMAs of the Alligator indicator is actively expanding, and the AO histogram forms new ascending bars, moving away from the transition level.

Support levels: 37400.0, 36600.0.

Resistance levels: 37860.0, 38700.0.

Trading tips

If the local growth of the asset continues, buy positions will be relevant, which can be opened after overcoming the resistance level of 37860.0 with the target at 38700.0 and stop-loss at 37500.0. Implementation time: 7 days and more.

In the event of a reversal and continued decline of the asset, as well as price consolidation below the local support level of 37400.0, sell positions with the target at 36600.0 will be relevant. Stop-loss – 37600.0.