Our expectations will turn positive in the short term, as we expect more rise for the index during its upcoming trading.
The Dow Jones Industrial Average continued to rise in its recent trading at the intraday levels, to achieve gains in trading on Wednesday and for the fourth session, by 0.63%, to add to it about 224.09 new points, by 0.78%.
ADP employment report showed an unexpectedly sharp drop in private sector payrolls for January, as the omicron mutant of coronavirus delayed hiring plans. That reading comes ahead of the closely watched official jobs report from the US Department of Labor on Friday for the month of January. However, the ADP’s readings do not always align with the NFP report issued by the Department of Labor.
A strong jobs report showing strong job and wage growth may reinforce expectations of monetary tightening by the Federal Reserve, and vice versa.
Technically, the index continues to rise, supported by the influx of positive signals in the relative strength indicators. It is under the control of the main bullish trend in the medium term along a slope line, as shown in the attached chart for a period of time (daily). It succeeded in its recent rise to get rid of the negative pressure of the simple moving average for a period of 50 days.
Therefore, our expectations will turn positive in the short term, as we expect more rise for the index during its upcoming trading, if it stabilizes above the main support level 35,000, to target the first resistance levels at its next key level 36,000.
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