To start the week, the Dow increases by more than 200 points as First Republic and regional banks recover.
- Stocks rose Monday, building on last week’s gains, as investors attempted to move on from the crisis that broke out in the regional bank sector earlier this month following the collapse of Silicon Valley Bank.
- The Dow Jones Industrial Average gained 207 points.
- Regional banks rose broadly, with the SPDR S&P Regional Banking ETF (KRE) climbing more than 3%. First Republic was the best-performing stock in the fund, surging more than 27%. PacWest also gained more than 6%.
- “The authorities were once again hard at work over the weekend trying to clean up the mess of the last few weeks,” Craig Eram, senior market analyst at Oanda, said in a note Monday. “The important thing is that the various institutions in the US and Europe continue to display the ability to rapidly and decisively deal with the fallout from the recent turbulence and contain it before it worsens. That includes regaining the confidence of the markets which has been shaken.”
- All the major averages rose to start the final week of the trading month.
- Fed Chair Jerome Powell and Treasury Secretary Janet Yellen aimed to assure investors that the U.S. banking system remained stable and supported in commentary delivered over the course of the week.
- Wall Street capped a winning week despite volatility related to the Federal Reserve’s latest interest rate hike and the ongoing bank crisis. while the Dow added 1.2%.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in up channel.
Dow Jones is currently trading above 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Immediate resistance is at 32677.52 & its immediate support level is 32414.08
HOW TO TRADE DOW JONES IN THIS WEEK
The Dow Jones is currently trading upward and has broken its previous day’s high; it is currently trading in a resistance area; if the price breaks the resistance level, further upside is possible.