DJIA: fixing of profit leads to a decrease in the indices

DJIA: fixing of profit leads to a decrease in the indices

29 July 2016, 13:09
PCM-Brokers
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TRADING RECOMMENDATIONS

 US stock indices halted their record growth observed since the beginning of the month. DJIA index after reached new record highs near the mark of 18620 is reduced and is close yesterday and month lows near the mark 18370.

 Following the auction on Thursday, DJIA decreased by 0.1% to 18457.00 points, S & P500 rose 0.2% and the Nasdaq Composite added 0.3%. DJIA index is falling for the fifth consecutive session.

However, the decline in the index is far corrective in nature after the recent rapid growth in July. The decline may also be due to profit-taking on long positions at the end of the trading month (today is the last trading day of the month).

Positive macroeconomic data coming recently from the United States, as well as the Fed's restrained position with regard to interest rates in the US contributed to the rise in US indices in recent years.

Low interest rates and investors' confidence that the US economy has maintained a strong position in an uncertain world continue to hold stocks at high levels, respective new record highs in recent years.

 

 

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