DJ 30 ABOVE 200DMA ON PAYROLLS, APPLE RESULTS AWAITED
DJ 30 futures are currently trading at 25142- higher by about 1.02% as compared to the previous close. The index futures closed in the positive territory in the last trading session also. The benchmark rose on Wednesday, led by Visa (up 3.7%). The index has crossed above its 200-day moving average (25136.81) earlier today. The markets consider it a key level for the medium-term.
Other top gainers in the Dow Jones include Apple (up 2.3%), Microsoft (up 3.3%), Caterpillar (up 2.9%) and Boeing (up 2.8%) at the time of writing.
However, the index has lost 6% in October through Tuesday’s close. Also, the benchmark is on track to post its largest monthly decline since August 2015, when it dropped 6.6%.
Among Dow constituents, Apple is due to report its earnings after the market close on Thursday.
On the data front, Private Payrolls rose by 227K in October, according to a report from ADP and Moody’s Analytics released earlier today. The gain is more than the market expectation of 189K. Payrolls in September was revised to 218K from 230K reported earlier. In addition, the Employment Cost Index for the third quarter also out today rose 0.8% QoQ. The index change was above the market expectation of 0.7% with a 0.6% growth seen in the index in the previous quarter. The Chicago-area PMI for Oct. also released today came in at 58.4. The PMI was down from 60.4 in Sept. and below the consensus estimate of 60.0, according to FactSet. This was the lowest reading of the index since April.
On the technical front, the RSI is currently at 44.78% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 25100, Take Profit At 25350 Stop Loss At 24970