Wall Street

U.S. Indices Rally, DJIA Returns To 25000

Posted Monday, October 29, 2018 by
Shain Vernier • 1 min read

It has been a rare positive Monday open on the markets, with the DJIA rallying more than 300 points. Investors have taken a bullish stance through the first hour of trade. Both the Greenback and indices are moving north, amid heavy bids. Gains against the Euro, British pound and Australian dollar have highlighted the forex action.

The economic calendar for this morning has been dominated by the release of the U.S. Core Personal Consumption Expenditure (YoY, Sept.). The number came in at 2% year-over-year, but the monthly figure for September was better than expected. If nothing else, this reinforces the FED’s adopted policy of gradual tightening.

DJIA Technicals

25,000 is a huge number for the DJIA and the entire American equities market. Action to open the week has brought about a return to this key area and heavy two-way action.

December E-mini DOW Futures (YM), Daily Chart
December E-mini DOW Futures (YM), Daily Chart

As far as the December E-mini DOW goes, traders are slugging it out in the vicinity of 25,000. Here are the two numbers I will be watching closely as the session progresses:

  • Resistance(1): 38% Current Wave Retracement, 24961
  • Resistance(2): Psyche Level, 25000

Overview: We are only 8 days out from the U.S. Congressional Midterm Elections. The return to 25000 is not merely coincidental. Unless we see some surprise news item, or market fundamental, then values in the DJIA are likely to remain in this area.

Charged news cycles are always a challenge to trade and the coming week will certainly give us plenty to scrutinize. Be sure to stay tuned to FX Leaders for real-time analysis and ideas on how to profit from the action.

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About the author

Shain Vernier is our US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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