The Dow Jones Industrial Average has started to rise again in its recent trades at intraday levels, to make gains in its last sessions of 1.37%, to add the index to around 436.05 points. It settled late in the session at the 32,197.60 level, after falling slightly in Tuesday’s session by -0.71%.

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Yesterday, the US Federal Reserve’s policy-setting committee decided to raise the federal funds rate by 75 basis points to a range of 2.25% to 2.5%, in line with expectations.

“We expect continued increases in the target range to be appropriate,” the Federal Open Market Committee said in a statement Wednesday afternoon. Inflation remains “high,” citing supply and demand imbalances, rising food and energy prices and broader price pressures, the same language used in the June statement. June, adding only a reference to food prices.

FOMC Highlights

Federal Reserve Chairman Jerome Powell said at a press conference after the FOMC meeting on Wednesday that incoming data will determine whether another “extraordinarily large” increase, such as 75 basis points, is needed during the next FOMC meeting on September 20-21, but this cannot be ruled out.

In other economic news, the trade deficit in advanced goods narrowed to $98.18 billion in June from $104.04 billion in May, reflecting a sharp increase in exports and a slight drop in imports.

The National Association of Realtors’ pending home sales index fell 8.6% in June, well below expectations for a slight increase. Pending sales are down 20% from the previous year.

Technically, the index enjoyed positive support due to trading above its 50-day simple moving average. It settled above the 31,885 support level, in light of the dominance of the short-term corrective downtrend along a sloping line. This is illustrated in the attached chart for one period (daily), with the start of negative signs appearing on relative strength indicators, after hitting overbought areas.

Therefore, our expectations continue for a more cautious ascent of the index in its next trading sessionas long as it remains stable above 31,885, to target the main resistance level 33,000.

Dow Jones Industrial Average Index

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