Technical Analysis Shows Dow Jones Losing A Lot Of Momentum It Built Up
The stock market has been struggling significantly following the current downtrend worldwide. The rise of inflation is affecting various countries and is especially affecting different types of assets.
The Dow Jones as a whole has been seeing a very depressing downtrend as of late, which has led to the entire stock market struggling as a whole. Even if the rest of the market manages to make small rallies, those are quick to shut down in just a few days.
The last two rallies that have taken place over the past few days were very quick to fall down again, and even if it can finally make a major rally, it will always be quick to fall.
The market needs more than just a rally; it needs various macroeconomic conditions to improve with time. But it could be possible that a lot of the momentum that the market had managed to gain in a short time could likely be slowing down now.
With the entire market struggling, it only makes sense that Dow Jones could be having a tough time with the rest of the market as a whole. And even though the most recent session for stocks did see some increases, it is nothing to scoff at.
Only Minimal Gains
In the most recent session of the stock market opening, Dow Jones was able to make very minimal gains. Despite starting out the week fairly strong, it was very quick to falter and slow down significantly. In fact, the Dow was only seeing a rise of just 2.37 points or 0.01% throughout the market.
By the end of the day, the value of the Dow remained almost identical to the value that it started off with. The value that the stock option was able to reach was 31,839.
More interestingly, however, was how quickly the stock option was fluctuating throughout the day.
The Immense Fluctuation
One thing that did become apparent about the stock market that day was that it can be violently volatile as well. While the Dow did start rising at the start of the day, the truth is that it would quickly start to lose all steam. Canada’s Central Bank’s decisions to raise interest rates improved hopes of most people in the market.
Disappointing Earnings Reports
All of the goodwill that the Bank of Canada’s decision was able to drum up was quickly laid to rest after very disappointing earnings reports were quick to come in and drive down the price. The earnings reports were of major tech companies like Alphabet, The parent company of Google, and Microsoft.
After major tech giants were coming down with bad earnings reports, then the rest of the market never stood a chance.