Dow, S&P 500, and Nasdaq rise on Expectations for debt deal. After assurances from US politicians that the US will not default on its financial commitments, US equities indexes rose on Monday.
The Dow Jones looks like it’s creating a floor.
After pledges from US politicians that the US won’t default on its debt commitments, US market indexes increased on Monday. Raising prospects of an agreement to extend the debt ceiling. Technical indicators indicate that there is a good chance that the indexes will continue to rise.
“We won’t default, the leaders of Congress all agreed. And, it has been expressed by each leader, according to US President Joe Biden on Wednesday. Market anticipations were low heading into the debt ceiling negotiations, but the agreement to prevent a default is encouraging.
Dow and S&P 500 are getting a boost from US debit ceiling likelihood.
Additionally, the US regional shares have stabilized and the quarterly earnings season has been encouraging. Additionally, optimism is being boosted by expectations that the US Fed’s cycle of rate hikes is over. Bearish pessimism among international investment managers has reached extraordinary levels while market positioning is still thin. Even if net retail stock purchases are at multi-month lows. A successful conclusion to the debt negotiations might boost the value of the stock market.
Rebounds from crucial support: Dow Jones Industrial Average
On technical graphs, the Dow Jones has recovered from a quite significant convergent buffer that was formed by the 200-day moving average. And the bottom edge of a wedge channel from mid-2022. The likelihood of a bigger advance increases with the hold above the support.
The other side of the head and shoulders arrangement, which might have the left shoulder at the low of Dec – The head at the low of March, and the right shoulder at the low of May, could be set off by a climb to the horizontal trendline from August at roughly 34280. And another breach over. A surge towards 37000 might be in the cards if the bullish formation does emerge and be-activated.
S&P 500: Prepares for a breakthrough
The potential of a modest double bottom (the lows of late-April and early-May) has grown as a result of the S&P 500 index’s recovery from its end-April low of 4050. The 7-month upswing would be confirmed by a break over the Feb. high of 4195. That might open the door for the August high of 4325. The general trend of the S&P 500 index, which was originally mentioned in the month of January, is still optimistic.
The 4050 end-April bottom still serves as a crucial bottom on the negative. Any breach under the support would signal a weakening of the near upward pressure and indicate a prolonged sideways trend.
