- As expected, Monday’s rally pushed the Dow Jones to rebound after some blue-chip stocks gave a positive performance.
- JPMorgan and the banks led the movement of the stock market in a positive direction.
- Today’s bearish trend during the Asian and European sessions will probably not have a significant impact on the American trading session.
NEW YORK, May 24 (FintechZoom): The spike that occurred in the Dow Jones triggered by JPMorgan hit the market firmly and meant that the dark storm cloud hanging over the economy could finally dissipate as the bank increased its 2022 net interest income by $3 billion, to more than $56 billion, and said forecasts would remain low beyond 2022 thanks to a strong consumer.
While most companies beat revenue forecasts, heavy losses from retail giants Target and Walmart last week led to their biggest declines since Black Monday in 1987. Both Target and Walmart were forced to absorb higher fuel and shipping costs and said certain inventory categories did not sell well with consumers.
A pretty good performance in yesterday’s trading action included contributions from JPMorgan, Visa, Apple, American Express, Walt Disney, Microsoft, Goldman Sachs, Caterpillar, and Coca-Cola with average positive changes above 3-5%. The spike of more than 600 points can provide fresh air to investors that this pressure will soon pass.
At the moment, looking at the stock, JPMorgan is in moderate buying mode with an average target price of $157.00, implying a 30.3% increase from the current price level. In a report released on May 18, Credit Suisse also maintained its Buy level on the stock with a target price of $160.00. If this condition is responded to well, investors will be increasingly convinced that the shadow of a recession will soon disappear. Good conditions for bullish remain in action today.
If we look at the opening conditions of the Asian market today, the Hang Seng Index decreased by 1.76%, as did the Nikkei by 0.94%. The situation did not change much when entering the European session, where the FTSE100, Euronext100, CAC40, and DAX experienced the same downward trend. Can the current bearish trend that occurs during the Asian and European sessions affect the movement of the Dow Jones back into decline? However, if we look closely, the hawkish conditions in the Asian and European sessions did not have a significant impact in the American trading session because the market leader was triggered by a positive response from leading US stocks.
Dow Jones technical analysis:
From a technical perspective, let’s look at the key area, namely the new resistance area of 32,200. What’s likely happening is a test of the strength of the new resistance, along with Monday’s spike in value.
However, more green stocks are still needed to break through this resistance because fragile conditions still loom. If this fails, the index could slip even deeper to last week’s low.
Therefore, the areas to watch out for are the new resistance area at 32200 or last week’s support area at 30700. For the worse, there was a support area in January last year at 29900.
