FxWirePro: Down suffers longest losing streak since 2011; bullish outlook intact

The US benchmark stock index, Dow Jones Industrial Average (DJIA) has suffered its longest daily losing streak since 2011 as it declined for eight consecutive days. The blue chip stock index fell for an eighth consecutive day on Monday and reached 20550. The index has shed almost 2 percent in the past eight sessions as doubts emerge on Donald Trump’s ability to pass his agendas through the U.S. congress, especially the tax reforms and infrastructure spending. President Trump has recently suffered a setback in the House of Representatives as his endorsed health care bill failed to pass. The voting on the bill was postponed by House Speaker Paul Ryan as they could not find enough support within the Republican Party to pass it. The Republican Party holds a relatively thick majority in the House with 241 members in 435 seats, yet they could not gather enough votes to pass the healthcare bill. The market is worried that if the Republicans couldn’t even pass agendas through the House, it would be even tougher for it to pass through the Senate, where the Republicans enjoy a thin majority.

Naturally, the worried investors have pulled down the Dow by almost 600 points. However, our calculations at FxWirePro are strongly suggesting that the Bull Run is far from being over. Instead, we expect buyers after correction that can extend a bit more. We expect the Dow to reach around 23850 area.