DJIA Technical: Broke minor support ahead and underperformed
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<li><strong>Dow Jones Industrial Average has underperformed against the S&P 500 and Nasdaq 100 in the past 2 sessions.</strong></li>
<li><strong>Broke minor support yesterday now turns into key short-term resistance at 34,310.</strong></li>
<li><strong>Sill sandwiched within a complex sideways range configuration in the medium-term horizon with its range resistance at 34,630.</strong></li>
</ul>
<p>The Dow Jones Industrial Average (DJIA) has continued to be one of the underperformers among the major US benchmark stock indices ex-post Q2 “Triple Witching” options expiration since last Friday, 16 June.</p>
<p>In the past two sessions, the DJIA has declined by -1.03% versus the S&P 500 (-0.84%), Nasdaq 100 (-0.76%), and small-cap concentrated Russell 2000 (-1.2%).</p>
<h2><strong>Sandwiched within a medium-term complex sideways range in the past 6 months</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_17-48-42.png"><img loading="lazy" class="alignnone wp-image-805897 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_17-48-42-1024×616.png" alt="" width="700" height="421" srcset="https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_17-48-42-1024×616.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_17-48-42-300×181.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_17-48-42-768×462.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_17-48-42.png 1507w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 1: US Wall St 30 medium-term trend as of 21 Jun 2023 (Source: TradingView, click to enlarge chart)</p>
<p>The price actions of the <a href="https://www.oanda.com/sg-en/trading/instruments/us30-usd/">US Wall St 30 Index</a> (proxy of the Dow Jones Industrial Average futures) have continued to churn within a medium-term complex sideways range configuration in place since 13 December 2022. The recent minor up move from the 25 May 2023 low of 32,561 has managed to stage a retreat right below the upper boundary of the range configuration now acting as resistance at 34,630 (see daily chart).</p>
<h2><strong>Minor support broke but still above the 200-day moving average</strong></h2>
<p><a href="https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_18-22-15.png"><img loading="lazy" class="alignnone wp-image-805898 size-large" src="https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_18-22-15-1024×616.png" alt="" width="700" height="421" srcset="https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_18-22-15-1024×616.png 1024w, https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_18-22-15-300×181.png 300w, https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_18-22-15-768×462.png 768w, https://www.marketpulse.com/wp-content/uploads/2023/06/US30USD_2023-06-21_18-22-15.png 1507w" sizes="(max-width: 700px) 100vw, 700px" /></a></p>
<p>Fig 2: US Wall St 30 minor short-term trend as of 21 Jun 2023 (Source: TradingView, click to enlarge chart)</p>
<p>Yesterday, the Index has broken below its minor ascending trendline support from the 1 June 2023 low now acting as a pull-back resistance at around 34,310 which also confluences with the 61.8% Fibonacci retracement of the current minor decline from the 16 June 2023 high to yesterday, 20 June 2023 low (see 1-hour chart)</p>
<p>Short-term momentum is still showing no clear signs of a bullish reversal as indicated by the 1-hour RSI oscillator that is still below a corresponding resistance at the 49% level.</p>
<p>A break below the 33,830 near-term support exposes the next support at 33,470 (minor swing low area of 7 June 2023 & close to the 50% Fibonacci retracement of the prior up move from 25 May 2023 low to 16 June 2023 high).</p>
<p>On the flip side, a clearance above 34,310 key short-term pivotal resistance negates the bearish tone for the next resistance to come in at 34,630 (medium-term range top as illustrated on the daily chart).</p>
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