News / US Equities
In an unexpected move, the DJIA rose by 936 points last night to follow the global rally experienced yesterday. The index increased by 11% as the Federal Reserve said central banks would offer banks unlimited amounts. This is the Dow’s 5th biggest rally in terms of percentage. The noticeable thing about yesterday’s big rally was that the volume came in lightIt’s like this rally was bound to happen but that people were not that convinced that it was time to get in. Since the psychological resistance of 9000 was easily broken last night, we can expect that the DJIA will try to break through the 10,000 level with the same ease Should a similar performance be repeated tonight, we can now expect the index to have made a V reversal that would most likely bring the index back to 10,300. After the worst week of trading where the index lost 22.6% of its value, we should expect the bulls to come roaring back. But how strong will they be when resistance levels will be tested?
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