The Dow Jones Industrial Average rose sharply during its recent trading on intraday levels, to achieve gains for the second day in a row, by 1.60%. The index earned 526.74 points, settling at the end of trading at the level of 33,376.49, after its rise in Tuesday’s trading by 0.28%.
An upbeat measure of consumer confidence helped lift the mood on Wednesday. Data released on Wednesday showed that the Conference Board's consumer confidence index rose to 108.3 this month, the highest level since last April, from an upwardly revised 101.4 in November.
Wednesday's moves follow a volatile session on Tuesday that followed a hawkish move by the Bank of Japan, seen as the last of the easygoing central banks. It raised the maximum yield on 10-year government bonds after the US and European Federal Reserves, after they and others raised interest rates.
More broadly, stocks are digesting the declines of the past two weeks and while there are some important employment and inflation numbers looming on Thursday and Friday. The bottom line is that the year-end calendar tends to be mostly subdued, especially with lower volumes. Before the year-end holiday season, investors exited their positions.
Dow Jones Technical Analysis
Technically, the index's rise in its recent trading came as a result of its reliance on the support of its simple moving average for the previous 50-day period. This coincided with its re-testing of a bearish corrective slope line that the index had breached earlier in the short term. This is shown in the attached chart for a (daily) time.
In the meantime, we notice that positive signals have begun to appear on the relative strength indicators, after reaching oversold areas.
Therefore, our positive expectations remain surrounding the index during its upcoming trading, as we expect more rise for the index throughout the stability of the 32,260.50 support. Targeting once again the 34,281.36 stubborn resistance level, in preparation to attack it.
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