The Dow Jones Industrial Average consolidated its gains with its recent trading at intraday levels, to achieve gains for the second day in a row by 1.12%. The index added to it about 337.98 points, to settle at the end of trading at the level of 30,523.81, after the index rose during Monday’s trading by a rate of 1.86%.
The third quarter of this year's corporate earnings reporting season continues and has been going strong so far. Goldman Sachs Group Inc. Index-listed GS Financial Services reported good earnings on Tuesday.
Separately, Atlanta Fed President Rafael Bostic said he still sees plenty of evasiveness and turmoil in the US labor market.
Meanwhile, Minneapolis Federal Reserve Bank President Neil Kashkari said on Tuesday that the Fed may need to push the benchmark interest rate above 4.75 percent if core inflation does not stop rising.
Stocks received a positive boost early in the session after news that the Bank of England would delay its bond-selling program, a move that highlighted central banks' willingness to halt monetary tightening if needed.
In US economic data, September industrial output rose 0.4% after a 0.1% decline the previous month, while the National Association of Home Builders said its monthly confidence fell 8 points to 38 in October.
Dow Jones Technical Analysis
Technically, the index succeeded in its recent trading in breaching the important 30,454.45 resistance level. This level represents the ceiling of a positive technical structure formed in the short term, which is the double bottom pattern, as shown in the attached chart for a (daily) period, supported by the influx of positive signals on the relative strength indicators, despite Reaching highly saturated areas with purchases.
However, the index continues to suffer from the continuation of negative pressure due to its trading below the simple moving average for the previous 50 days, in addition to the dominance of the corrective bearish trend in the short term and its trading along a slope line.
Therefore, our expectations suggest more rise for the index during its upcoming trading, if it stabilizes above the level of 30,454.45, to target the resistance level of 31,885.00 as a price target for the formed double bottom pattern.
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