The Dow recovered from early losses to close up ~70 points on Wednesday with tough sessions by Home Depot (HD US), McDonald’s (MCD US), Nike (NKE US) and Salesforce (CRM US) weighing on the old index, although HD was the worst performer, and it fell less than 2%. We are conscious that the last three significant pullbacks have unfolded after the market made fresh highs, only to fall away. Hence, we aren’t keen to embrace a move if it unfolds toward 46,000 as a repeat performance is a strong possibility, i.e. three steps forward, two back.
- The Dow looks poised to make fresh highs in the coming weeks, but we wouldn’t be chasing the move at the index level.
MM is neutral towards US stock’s short term
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