Monday, October 25, 2010

Daily Dow Jones Review, 25/10/2010

The Dow surged as high as 115 points to 11248 amid better than expected September’s existing home sales and the National Association for Business Economics (NABE) said that 3Q employment conditions jumped to the highest level since the start of the 2008-2009 recession. The survey also showed expectations for hiring over the next 6 months rose to the highest level since 2006. Nevertheless, sharp falls on banking stocks amid the foreclose concerns sparked profit taking activities and capped gains at 31 pts to ended the day at 11164.

Meanwhile, the dollar, which sunk to a new 15-year low against the yen earlier, was trading lower against a basket of currencies. The dollar index was last down by 0.4%. The weakness in the dollar has helped push commodities and bond prices higher. After the bell, despite topping Wall Street’s estimates, Texas Instruments price slipped as the company offer a weaker guidance on its 4Q10 revenue.

On the back of more economic data and corporate results onslaught this week, together with the midterm elections and this week's triple-whammy, the Dow could witness more swings ahead. Immediate resistance levels are situated around 11300-11500 while immediate support levels are 10600-10800.

Daily Dow Jones is testing the upper channel.
Source: MarketWatch

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