After fluctuating for much of the session, stocks moved significantly higher late in the trading day on Tuesday. The Dow climbed firmly into positive territory soaring 432 points to 24,875. Traders once again looked to pick up stocks at reduced levels after bargain hunting efforts in the previous session were thwarted by renewed concerns about the trade war between the US and China. Positive sentiment may also have been generated by a report from the Conference Board showing a continued increase in consumer confidence in the month of September. In the US earnings calendar Wednesday car maker General Motors and KFC fast food chain report earnings before the NY market open. Jobs data may also attract attention today with payroll processor ADP scheduled to release its report on private sector employment in the month of October.
The Dow was dominated by bulls yesterday lifting the market higher throughout the day and pushing through key technical resistance levels. The index is now trading close to the 25000 psychological number, and slightly touching the 200-period MA from below, signaling a bearish short-term trend ahead. The tend is still technically bearish on the hourly chart, but buying might accelerate should prices move above the nearby swing high at 25040 where further buy stops could get activated.
Support: 24795 / 24444
Resistance: 25000 /25275