Dow stocks feeling the slower growth storyline

Technical Analysis

It’s not a great day for the US major stock indices. The declines are being led by the Dow Industrial Average which is down around -450.3 or -1.33% at 33460. That is a large decline since December 15 when the index fell -2.84%. Yesterday the Dow also fell over 1% (-1.14%).

The biggest decliner is

  • Honeywell at -3.27%.
  • McDonald’s is down 2.75%,
  • IBM is down -2.66%, and
  • Coca-Cola is down -2.59%.

There is only one Dow stock which is positive. That is Goldman Sachs which is up 0.57%. Recall yesterday Goldman Sachs tumbled by -6.44% which was the largest one day decline going back to January 18, 2022.

Looking at the S&P, it is down – 45.62 or -1.14% at 3945.48. The decline took the price back below its 200 day moving average at 3975.24.

The NASDAQ index is currently down -91.2 or -0.82% at 11003.94. That index is trading back below its 100 day moving average (blue line in the chart below) at 11030.64. The price closed above its 100 day moving average on Monday and again yesterday. The last time the price had closed above that moving average for two consecutive days was back in September 2022.

The NASDAQ has been up for seven consecutive days. That did not happen in 2022 at any point. So the decline is due. However, the failure today is not so great from a technical perspective.

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