Nothing seems to destabilize Wall Street continuing its impressive rally, with an increase of about 18% in 4 months. The latest employment figures in the United States have allowed to set new highs. However, the agenda for the next day appears too limited to support the continuation of the bullish trend. In addition, the Fed could finally adopt a moderate tone on the improvement of the U.S. economy even if the accommodative measures should obviously continue.
Yesterday, at the end of session, the Dow Jones was slightly a victim of rumors about a potential slowdown of the Fed policy. But it is mainly such speculation that could cause a wave of anxiety and provoke profit taking.
Technically, the dynamics of the Dow Jones remains in a strong bullish trend in daily above 14,850 points, threshold coinciding with the 20-week moving average. However, take a short position currently remains very difficult due to the unrealistic nature of this increase, without pause. We are currently in favor of consolidation and we bet on a 5% drop of the index. However, any anticipation must be confirmed by a signal to take a short position below the 15,000 points in closing price to target 14,400 points.