Wall Street benchmarks consolidate lower and the DJIA clings to the 4-HR pivot

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  • DJIA was falling 11.4 points, or less than 0.1%, to 26,536.82.
  • The S&P 500 dropped 3.6 points, or 0.1%, to 2,913.78.
  • The Nasdaq Composite Index added 25.2 points, or about 0.3%, to 7,909.97. 

Wall Street was ending in the red as investors weighed up the prospects to come from the G20 later in the week and reflect on worsening economic data. with the Dow Jones Industrial Average, DJIA, falling 11.4 points, or less than 0.1%, to 26,536.82, while the S&P 500 lost 3.6 points, or 0.1%, to 2,913.78. The Nasdaq Composite Index COMP, +0.32% rose 25.2 points, or about 0.3%, to 7,909.97. 

U.S. data

Analysts at ANZ bank noted that the May US durable goods headline outturn of -1.3% was weak, but ex-transport orders rose 0.3% and core orders were also stronger than expected, rising 0.4% m/m. “Core shipments, which are actual orders delivered and a good barometer of actual business investment spending, rose 0.7% m/m, up from 0.4% m/m in April. The data provided some push back against a 50bp rate cut by the Fed, and market pricing adjusted accordingly.”

DJIA levels

The DJIA popped and dropped back Tuesday’s lows,  the pivot at 26550 on the 4HR and 1HR chart, testing the 20 June low and backing away from the 3rd Oct 2018 highs, putting the 26951 Oct 2018 highs and the 27000 psychological level back over the horizon, for now. Below 26500, the prior sideways consolidating above the 61.8% Fibo retracement level of April to June swing highs and lows guard 25984 and then a 50% mean reversion of the current range to the 257940s.

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