- Dow Jones scored 150 points on Friday, falling back to 41,200.
- Investors are due to geopolitical tensions when the US and China guide the original trade speeches.
- Even President Trump's social media post, which exceeds 80% of the tariff, can strengthen the feelings of the markets.
On Friday, Dow Jones's industrial medication (DJIA) followed the wider market lower on Friday, decreasing to 41,150 as investors take a tense weekend. The United States (USA) and China will be directed to the opening of trade negotiations in Switzerland this weekend, but policy makers of both administrations have warned that talks are strictly preliminary. The Chinese delegates have specifically warned that the final transaction may be months away.
US President Donald Trump struck social media in early Friday, publicly making a possible setback for Chinese goods tariffs, which is currently standing at 145%. Donald Trump floated the idea of reducing Chinese tariffs to 80%. China's 80% tariff is indistinguishable from 145%, as both levels are so high that they represent a functionally cheap commerce on which the entire US economy is entirely dependent on.
The average Fed remains alarming in the interest rate adjustment
The Federal Reserve (Fed) struck a firm waiting tone this week, after the interest rates remain in May. There were public performances on Friday, but they all made significant efforts to avoid talking directly about monetary policy. Fed appears to be the shoulders of its shoulders, shrugging insecurity associated with a united trade policy, making it impossible to precisely predict economic results, leaving the data dependent on Fed planted firmly.
According to the CME Fedwatch tool, interest rates still value better options if Fed is forced to cut another quarterly rate of interest rate in July, but the stakes have bleeded towards keeping another interest rate. With the current cut, the tariff markets are estimated at a 40% probability that Fed will not reduce in July, and the odds floated at 20-30% earlier this week.
Dow Jones price forecast
Dow Jones is near 41,600 near the 200-day exponential moving average (mother) after the Bullish flubing. Pricing is alleviated from the main moving average, but in the near future technical support will be priced at a 50-day mother at 41 150 years old.
Despite the fact that dark technical clouds gather above the head, the momentum is still firmly resting on the providers. Dow Jones has recovered more than 12.5% of the fall of April in April and the offers continue to be higher as market equipment recovery.
Dow Jones daily chart
Dow Jones Fuck
Dow Jones's industrial average, one of the oldest stock market indexes in the world, is being compiled from the US 30 most traded shares. The index is priced at a price rather than a capital letter. It is calculated by taking the prices of ingredients and dividing them with a factor currently 0.152. The index was founded by Charles Dow, who also founded The Wall Street Journal. In later years, it has been criticized for not being representative enough because it only monitors 30 conglomerates, unlike broader indices such as S&P 500.
The Dow Jones Industrial High (DJIA) is controlled by many different factors. The key is the concentrated effectiveness of the component companies published in the company's income statements. US and global macroeconomic data also contribute because they affect the feelings of investors. The level of interest rates set by the Federal Reserve (FED) also affects DJIs, as it affects credit expenses that many companies are highly dependent. Therefore, inflation can be both the main driver and other metrics that affect FED decisions.
Dow theory is a method to determine the main trend of the stock market developed by Charles Dow. The main step is to compare Dow Jones's industrial average (DJIA) and Dow Jones transport average (DJTA) direction and to follow only trends where both move in the same direction. The volume is confirmed by the criteria. The theory uses elements of peak and throat analysis. Dow's theory is three trend phases: a gathering when smart money starts to buy or sell; public participation when the general public joins; And distribution when smart money comes out.
There are many ways to trade DJia. One is to use an ETF that enables investors to trade DJIs as one security instead of buying shares in all 30 election companies. An example of the driver is the industrial average ETF (DIA) of the Spdr Dow Jones. DJI Future Agreements allow traders to speculate on the future value of the index, and the options give the right, but not the obligation, to buy or sell the index at a predetermined price. Investment funds allow investors to buy part of the DJIA shares from a diverse portfolio, thereby providing contact with the overall index.
