After initial weakness, US indices reversed and resumed the post Christmas historic rebound. DOW ended up 260pts or 1.14% at 23138.82. S&P 500 rose 0.86% while NASDAQ gained 0.38%. Asian markets are mixed though. At the time of writing, Nikkei is down -0.47%, Hong Kong HSI is up 0.10%, China Shanghai SSE is up 0.38% and Singapore Strait Times is up 0.74%.
In the currency markets, Dollar and Canadian are the weakest ones for today so far. Yen is trading to pare back some of yesterday’s losses and is the strongest one for the moment.
For the week, Canadian Dollar is overwhelmingly the weakest one. Dollar, Aussie and Kiwi are also among the weakest. On the other hand, Swiss Franc and Euro are the strongest, followed by Yen.
The key for DOW will lie in the resistance zone between 100% projection of 21712.52 to 22877.09 from 22267.42 at 23431.98, and 38.2% retracement of 26951.81 to 21712.53 at 23713.93. Failure to break through this zone decisively will keep the rebound rebound 21712.53, corrective in nature, and a relatively short one.