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DJIA likely to end down for the fourth consecutive week

FXStreet (Mumbai) - The US Equity markets are trading strong today, despite which the DJIA is likely to end lower for a fourth consecutive week.

The index is currently trading 156 points up at 16,273, having recovered from a low of 15,853 hit yesterday. However, the index will have to rise 243 points more in order to avoid a negative weekly closing. The Equity markets rallied since yesterday on hopes that the Federal Reserve (Fed) may extend its bond buying program beyond the schedule in order to support the economy.

The Index details reveal a strong performance from bank stocks. JP Morgan and Goldman Sachs are trading higher by 1.26% and 2.36% respectively. Meanwhile, General electric is the biggest gainer so far, up 3.4%. Except Walmart and Coca cola, which are down by 0.80% and 0.51%, respectively, all other stocks are trading in the green.

Moreover, the DJIA is likely to finish the week lower since the markets lack fresh triggers going into the weekend. The dovish talk from the Fed official Bullard and a strong factory output data released yesterday has been priced-in by the markets. So far, the housing data released today has not created much of an impact on the financial markets.

DJIA Technical levels

The index has an immediate resistance of 16,333 levels. A weekly close above the same may see the index rising to 16,500 levels next week. On the other hand, prices may fall back to 16,000 levels if the index fails to rise above 16,333 levels.

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