Dow Jones futures moved higher of the open on Monday, before getting knocked down mid -day. The index traded just shy of 20,700 then pulled back almost 150 points on geo-political headlines. Reports of 150,000 Chinese troops along the North Korean border gave the market a push down before holding near the 20,550 level. The market rebounded nicely, climbing back to 20,660. A slow sell off after saw the market close at 20,600, up 7 points.
The indices have become sensitive to global news in recent sessions. I have a feeling it will be that way for a while. The robust upward movement we saw to start the year has faded away. As I’ve stated before, I’m not looking for a major correction, but 1-2% pull backs should not come as a surprise to anyone.
Markets will be closed on Friday in observation of the Good Friday. Shortened weeks tend to see lower volume. But that doesn’t mean we aren’t going to see action this week. I ‘m looking for the Dow to test support near 20,500 on Tuesday. If that level holds look for another push to the 20,700 level.
John Weyer
Director Commercial Hedging
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