The Dow Jones-30 Industrial Index (#INDU) is trading below the 21 SMA and below the 200 EMA located at 34,351 with a bearish bias.
Stock investors want to play safe due to the lack of progress in Ukraine and the expectation of adjustment of the monetary policy of the main central reserve banks throughout the world.
European markets fell on average 2% and Wall Street decreases on average 1.5%. The negative climate in the markets was triggered by comments from Federal Reserve officials, who expressed support for a more rapid adjustment in monetary policy.
Since March 29, the Dow Jones-30 has been making a technical correction movement after having reached the psychological level of 35,000 points and the zone 6/8 Murray located at 35,156. This downward movement could continue in the next few hours, if the index closes below the 200 EMA located at 34,351 on the daily chart.
On the downside, DJ30 is expected to reach 3/8 Murray at 33,984 and even reach 2/8 Murray support at 33,593.
On the contrary, if the Dow Jones-30 manages to stay trading above the 4/8 Murray and above the 200 EMA, we could expect a pullback towards the 21 SMA located at 34,667 which will be an opportunity to sell.
The eagle indicator is giving a negative signal and approaching the oversold zone. The Dow Jones-30 is likely to find support around 3/8 Murray located at 33,984.
