Djia Slips On Monday

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Djia Slips On Monday

Djia Slips On Monday Amid Thin Volumes

Dow Jones Industrial Average (DJIA) made a new high on Monday near 41,419.65. However, the index has now inched lower from these highs as the trading volumes remain thin today.

Also, it seems that the DJIA investors are now realigning their expectations regarding the upcoming rate cutting cycle in September.

Us Durable Goods Order Show A Strong Print

The US Durable Goods Orders showed a solid reading, which has helped the stocks in the physical production category to remain bid. The data showed a reading of 9.9% m/m, a lot higher than the 4.0% forecast made by experts.

While the Durable Goods Orders beat expectations, they actually contracted by -0.2% m/m if we exclude transportation spending.

For the rest of the week, trading in the Dow Jones Industrial Average (DJIA) will likely remain quiet as there are no big data releases. However, Thursday will be an exception as the Q2 US GDP will be released with a forecast of 2.8%.

That's why we can expect some more volatility on Friday as the markets will shift their focus entirely on the upcoming rate cuts from the Federal Reserve. Also the US PCE for July is also due for release with a forecast of 0.2%.

Overall, the price action in DJIA remains subdued as the investors are now awaiting fresh data releases to place their next trades.

Since the start of August, DJIA has managed to gain 7.9%, which is an impressive feat in itself. The index has moved higher from 38,382.90 to around 41,419.

However, it seems that the DJIA bulls have now run out of steam as the index is now slowly inching lower. According to experts, the index is now headed towards the 50 EMA present near 39,946.

But if the RSI turns higher, it would be a sign of a turnaround and would propel the DJIA beyond its recent highs in no time.

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