The worst week for Dow Jones (INDEXDJX: .DJI) since March, 25K next target? – Idaho Reporter


The worst week for Dow Jones (INDEXDJX: .DJI) since March, 25K next target?

The Dow Jones Industrial Average Index (INDEXDJX: .DJI) has just fallen below the hugely important 200-day line at 26,199 points. After the index has been almost seven percent in the red since the beginning of the week, the short-term downward trend is picking up speed again. The current week will probably be the worst since March.

This week alone, the Dow Jones (DJIA) has generated four strong sell signals.

On Monday the index broke the 50-day line at 28,016 points. On Wednesday, the events rolled over. With a downward gap, the price fell below the 100-day line at 27,250 points before the start of trading and slipped below the trend line at 26,920 points and below the September low at 26,537 points during the trading day.

The index has just crossed the 200-day line at 26,199 points. If the Dow Jones closes below this important level tonight, it should further accelerate the sell-off. Short-term setbacks to the July low of 25,524 points must be expected.

Chevron beat earnings but …

In the third quarter, Chevron and Exxon suffered heavy hits and had to cope with further heavy business losses.

The second largest US oil company Chevron fell in the last quarter a minus of 207 million dollars. For comparison: A year ago there was still a net profit of 2.6 billion dollars to book. Overall, the revenues collapsed by a good 30 percent to $ 24.5 billion. Chevron is also fighting the crisis with drastic cost cuts – equipment investments fell 48 percent and operating expenses fell 12 percent. The group is about to lay off 10 to 15 percent of its 45,000 employees.

What now?

The major concerns about the effects of the second corona wave put the Dow Jones Industrial Average index under pressure for the whole week. If the 200-day line is broken sustainably, strong downward movements are to be expected.

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