The Dow skyrocketed yesterday surging up 545 points or 2.1% to 26,180 and reaching its best closing level in nearly a month. The upward move on Wall Street came as the results of the highly anticipated midterm elections on Tuesday came largely in line with expectations. Trading today is likely to be driven by anticipation of the Federal Reserve's monetary policy announcement due tonight. The announcement by the Fed is likely to overshadow the Labor Department's report on weekly jobless claims.
From a technical perspective, yesterday's close at 26180 marks the highest recorded closing price since October 9th. The bulls were in full control, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for today's session. The Dow managed to close above the 50-day moving average on the daily chart, crossing above the upper Bollinger Band for the first time since September 21st. Prices have shown unusually strong upward momentum in the short-term, signaling the beginning of a strong momentum breakout leading to even higher prices targeting the 26,250 resistance level.
Support: 25645 / 25275
Resistance: 26250 /26485