Summary
The Dow Jones retreated from near-record levels, snapping a multi-session winning streak as traders turned cautious. With the index just shy of its all-time high, profit-taking and macro uncertainty took the front seat.
Key Drivers of the Pullback
- Earnings Anticipation: Investors awaited quarterly results from major tech names, especially Nvidia, which could set the tone for broader market sentiment.
- Fed Watch: The Federal Reserve's May meeting minutes hinted at ongoing inflation concerns, with no clear signal on imminent rate cuts—this tempered bullish sentiment in equities.
- Trade Policy Jitters: Developments around U.S. trade tariffs raised concerns about potential cost pressures on multinational corporations, pressuring sentiment in industrial and tech-heavy segments.
Short-Term Outlook
The Dow's dip reflects a pause for breath amid an otherwise strong uptrend. While momentum remains intact, earnings volatility, central bank clarity, and geopolitical developments will shape the next leg. Traders should:
- Watch for Nvidia earnings and PCE inflation data later this week.
- Track bond yields for rate expectations.
- Keep an eye on international trade headlines for potential spillover effects.
US30 – H4 Timeframe
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The 4-hour timeframe chart of US30 shows the price entering a critical supply zone, with its bullish probability further marginalized by the confluence from the two resistance trendlines. The initial target is the 100-period moving average since the highlighted point of interest falls within the 86% Fibonacci retracement level.
Analyst's Expectations:
Direction: Bearish
Target-41805.10
Invalidation- 42870
CONCLUSION
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