Dow Jones tested historic highs near the 50,500 level but lost momentum and pulled back.
Disney, which was up by 2.8%, was the biggest gainer in the Dow Jones index today. The stock continues to rebound after the sell-off, which was triggered by the earnings report.
JPMorgan and Goldman Sachs were among the losers in the index amid worries about the impact of AI on the financial industry.
Dow Jones benefits from sector rotation as traders move away from the tech sector and buy stocks that have previously underperformed.
From the technical point of view, Dow Jones continues its attempts to settle above the resistance at 50,100 – 50,200. In case Dow Jones manages to stay above the 50,200 level, it will move towards recent highs near the 50,500 level. A move above 50,500 will push Dow Jones towards the 51,000 level.
On the support side, a move below the psychologically important 50,000 level may trigger a wave of profit taking. In this scenario, Dow Jones will head towards the nearest support, which is located in the 49,500 – 49,600 range.
For a look at all of today’s economic events, check out our economic calendar.