Stocks in the US staged a substantial turnaround over the course of the trading session on Monday, with the Dow climbing well off the lows of the day and into positive territory to close at 24423. Light volume may have contributed to the volatility, as some traders remained on the sidelines amid a lack of major US economic data. The economic calendar remains relatively light today as well, with the report on producer prices in the month of November to be released later today. Reports consumer price inflation, retail sales, and industrial production are likely to attract attention in the coming days. Traders may however remain on the sidelines ahead of the Federal Reserve's monetary policy meeting next week.
The Dow Jones Industrial Average fell as much as 507 points before recovering to finish the session up 34 points at 24423, forming a bullish Long Tail Up pattern which is known as a reversal signal. With prices now back above the key support level at 24235, the index seems to be going back to the resistance area between 24543 and 24630. The RSI looks bullish indicating an increase in upward momentum.
Support: 24235 / 24100
Resistance: 24543-24630 / 25000