Dow Jones facing key support ahead of the inflation data. A break below 35,006 could see a pullback towards the trendline.

The Dow Jones is trading at around 35,283. This index is mainly classed as a tracker of the US economy and the inflation data will play a considerable part in its movement over the next couple of weeks. Key support is that little cluster highlighted by the orange oval on the chart, the level reads 35,006. A break below would be an indication of a potential pullback closer towards the first supportive trendline (dotted). A break below the dotted trendline would suggest that the index could even test the green trendline which dates back to March. However, at this moment in time, it does not seem like such a fall is likely. In contrast, a pullback towards the dotted trendline is more likely, especially as some of the index's constituents have a big weighting. E.g. Apple, who has begun its pullback already.  It will be clearer once the data is released. Based on the technical indicators, they are mixed as the MACD is negative but the RSI reads 56, still positive.