US 30

The Dow Jones has recovered marginally from its early losses, but the short-term trend remains negative following Friday's sharp retreat. Technically, when I look at the daily chart, the US30 is now correcting losses.

Key Indicators

• Momentum indicators favour downside over upside, increasing the appeal of further downside.

• The upside pressure weakened amid a solid ceiling in place.

Fundamental Context

The Dow Jones general trend is still upward, but it seems limited in its attempts to move higher following the recent pullback. Looking ahead, the sustainability of any gain in the index this week will largely depend on the release of US inflation data and geopolitical developments.