US stocks showed a significant recovery attempt over the course of the trading day on Tuesday after falling sharply early in the session. The major averages climbed well off their worst levels of the day but still finished the session firmly in negative territory. After plunging by nearly 550 points, the Dow ended the day down 126 points at 25,191. A negative reaction to quarterly results from some big-name companies contributed to the selloff. Following a couple quiet days on the US economic front, trading today may be impacted by reaction to a report on new home sales as well as the Federal Reserve's Beige Book.
The Dow managed to reverse during the session as bulls took control ending the day with an indecisive close. Neither buyers nor sellers were able to gain control during the session. The index did slide below key technical support levels at 25100 showing an intact downtrend in the short term. However, a bullish candlestick pattern followed and the index closed above its opening price. The failure to close above this support now turned resistance could increase that level's importance going forward. The RSI looks mixed to bearish signaling further decline in the short-term.
Support: 25000 24795
Resistance: 25100 25187