LIVE MARKETS-Post-Fed rout sends Dow below key long-term moving average; 45,000 support zone eyed

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POST-FED ROUT SENDS DOW BELOW KEY LONG-TERM MOVING AVERAGE; 45,000 SUPPORT ZONE EYED

Wall Street ended sharply lower on Wednesday after the Federal Reserve held U.S. interest rates steady and projected only a single rate cut for the year as officials took stock of economic risks from surging oil prices and the U.S.-Israeli war on Iran.

With this, the Dow .DJI took the biggest hit. It also finished below its 200-day moving average (DMA) for the first time since June 20, 2025. The Nasdaq Composite .IXIC ended below its closely followed long-term moving average for the second time in the last four trading days.

The S&P 500 .SPX ended less than 10 points above its 200-DMA. The benchmark index last closed below its 200-DMA on May 9, 2025.

Looking specifically at the Dow, it ended Wednesday at 46,255.15, putting it down 7.9% from its 50,188.14 February 10 record close and down 8.49% from its 50,512.79 February 10 record intraday high.

Now on Thursday, stock futures' weakness is suggesting downside follow-through at the open.

In terms of the blue-chip average's next support, traders are eyeing a number of levels in the 45,000 area.

The rising Fibonacci-based 233-DMA ended Wednesday at 45,765. The October 15 and November 20 intraday lows were at 45,452 and 45,728. The 38.2% Fibonacci retracement of the April 2025 to February 2026 advance is at 45,202. The July 2025 high was at 45,016, while the December 2024 and January 2025 highs were at 45,073 and 45,054.

Thus, given the plethora of support levels, there may be good potential for the Dow to soon mount a stand of some form.

On strength, the 23.6% Fibonacci retracement of the April 2025 to February 2026 advance is now a hurdle at 47,232.15. The March 17 high was at 47,428.12.

The 100-DMA, which capped strength on March 10, ended Wednesday at 48,252.

(Terence Gabriel)

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