Following the sell-off seen in the previous session, stocks showed a substantial move back to the upside over the course of the trading day on Thursday. The major averages climbed firmly into positive territory, partly offsetting yesterday's steep losses. The Dow jumped 401 points to 24,984 benefiting from the release of upbeat economic data, including a report from the Commerce Department showing an unexpected increase in durable goods orders in the month of September. Looking ahead, an initial reading on third quarter GDP may attract attention on Friday along with a revised report on consumer sentiment in October. Futures are pointing to a lower open today following disappointing earnings news after the close yesterday.
The Dow rebounded 400 points yesterday but is still clearly in a downtrend on the medium-term as it has broken through the floor of a rising trend channel. This indicates declining prices, or the start of a more horizontal development. The index has a key technical support at 24444 and we will surely retest this support in the near term. The RSI looks mixed to bullish on the hourly chart suggesting some more upside potential during the next few hours.
Support: 24444 -
Resistance: 24795 25000