Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

Dow Jones Rally Halts; Investors Fear OPEC Cuts

By NAGA (Michalis Efthymiou)Market OverviewNov 29, 2022 06:08AM ET
www.investing.com/analysis/dow-jones-rally-halts-investors-fear-opec-cuts-200632895
Dow Jones Rally Halts; Investors Fear OPEC Cuts
By NAGA (Michalis Efthymiou)   |  Nov 29, 2022 06:08AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
EUR/USD
-0.17%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
NDX
-1.85%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-1.12%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-0.65%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BA
-0.63%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DIS
-1.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

The first day of the week was filled with ups and downs, but today the market gets ready for 4-days of jam-packed economic releases.

Price declines were mainly seen in equity markets, with the Dow Jones forming its first decline in over a week and the S&P 500 seeing its largest decline since Nov. 9. The market generally saw a risk-off sentiment. However, the futures market is indicating a positive start to the day.

Crude Oil

Crude oil on the other hand, dropped to a new yearly price low and later found a large surge of buyers.

The price rebound was mainly triggered by large orders as market participants looked to benefit from the discounted price and also the weaker US Dollar. Traders are also cautious as to what price caps may do to supply.

Crude oil price chart.
Crude oil price chart.

Currently, EU members are not able to agree on the price cap. Some nations, such as Poland and France, wish to punish Russia further by lowering the price cap to $60 per barrel.

At the same time, others are not willing to further pressure their economies, such as Greece, Germany, and Cyprus, who are requesting a $65-$70 price cap.

Lastly, investors are concerned OPEC may again look to reduce production levels to support prices. This is something that was done in the first week of October.

US Dollar

This morning, the US Dollar Index has declined by 0.50% but remains above 106.00. The EUR/USD managed to cross to a new price move but is currently moving within a retracement.

Investors are waiting for the Consumer Confidence scheduled for this afternoon and tomorrow’s Fed Chairman speech. Investors are hoping for more clarification from the Fed head.

EUR/USD price chart.
EUR/USD price chart.

Experts believe the terminal rate will remain the same, but the regulator will lower the size of the rate hikes. In addition, investors will look at Friday's employment figures to see how resilient the employment sector has been to the economic decline and high interest rates.

Dow Jones

Dow Jones saw a strong and clear downward trend throughout yesterday’s New York Session. The price declined by 1.30% without forming a single bullish retracement.

This morning, the index has slightly increased but remains on the lower swing and is experiencing a weaker movement than the S&P 500 and Nasdaq 100. Traders looking to short the asset further will be aiming for a breakout of the $33,798 level.

Dow Jones price chart.
Dow Jones price chart.

When looking at technical analysis, we have indications of a downward trend in the short-medium term and a retracement in the shorter term. Wave analysis shows the price has broken onto a lower swing, indicating a downward trend.

The latest Moving Average crossover is downwards and was formed at the end of yesterday’s Asian Session. However, the Stochastic Oscillator has crossed upwards on the 1-hour Chart, and the price remains above the 75-day EMA on the 4-hour chart.

An influential factor that not many traders are aware of is the bond market. The bond market has declined significantly over the past month, which has supported the Dow Jones and potential lower rate hikes.

However, the Bond market has slightly improved over the past few days, making it more attractive for investors. This may support a downward trend if bond yields continue to increase.

However, the index was supported by the earnings report released recently by Pinduoduo (NASDAQ:PDD). The company’s revenue and earnings per share increased above economists' expectations. The stock price increased by more than 12% after the market closed.

During Monday’s trading session, only 5 of the 30 stocks ended the day at a higher stock price. At the same time, the strongest declines were seen amongst Boeing (NYSE:BA), 3M Company (NYSE:MMM), and Walt Disney Company (NYSE:DIS).

Dow Jones Rally Halts; Investors Fear OPEC Cuts
 

Related Articles

Michele Schneider
Inflation, What Inflation? By Michele Schneider - Jan 29, 2023 1

I typically have a song or two in my head. After all, watching ticks is musical and has a lot of different beats. And typically, those songs turn into parodies. For this past...

Dow Jones Rally Halts; Investors Fear OPEC Cuts

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
George Walton
George Walton Dec 26, 2022 11:29AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The success behind my profit earning investment is not solely on my skills but by the help of investing with an expert, who manages my accounts for many years, thanks goes to my accounts manager.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email