The Dow advanced 191 points yesterday ending the day at 25,462. However, trading volume was particularly low yesterday ahead of the Federal Reserve's looming monetary policy announcement that kept some traders on the sidelines. Looking ahead, traders may stick to the sidelines again today amid a quiet day on the US economic front as they await the results of the midterm elections.
Prices continue to consolidate within the same trading range between 25,010 and 25,580 for 4 days. While still in a long-term uptrend, the index will need to close above the key resistance at 25540 for some real bullish action. However, the alternative scenario is the bears dominate the day and a retest of the 200-period moving average coinciding with the 25,000 key technical support level.
Support: 25275 / 20000
Resistance: 25540 /25795