Stock Indices: Dow Jones rises at the sharpest rate in almost one month

On Monday Dow Jones Industrial Average traded within the range of 16,502.10-16,798.37. The benchmark closed at 16,776.43, surging 1.85% (304.06 points) on a daily basis and marking a second trading day of gains in a row. It has been the fastest daily rate of increase since September 8th, when DJIA went up 2.42%. The daily high has been the highest level since September 17th, when the average went as high as 16,933.43. In weekly terms, DJIA advanced 0.97% last week, which has been the first gain in the past three weeks.

Among the companies included in the benchmark, 1 posted a daily decline on Monday and 29 posted a daily gain. Nike Inc (NKE) has been the only company to register a daily drop in its share price yesterday, going down 0.75% to close at USD 124.27. It has been the first slump in the past four trading sessions. Nikes stock traded as high as 126.49 on Monday, which has been the highest price level in more than 9 years.

At the same time, the shares of Caterpillar Inc (CAT) and General Electric Company (GE) registered the most notable daily increases within the DJIA, both going up 5.30%, to close at USD 69.18 and USD 28.82, respectively. Caterpillar shares rose at the steepest daily rate since January 27th 2014, when they appreciated 5.94%, while General Electrics stock surged the most since April 10th 2015, when a daily rate of increase of 10.80% was recorded.

Correlation with other indices

Taking into consideration the daily closing levels of the major stock indices examined and the period September 28th-October 2nd, we come to the following conclusions in regard to the strength of relationship:

DJIA to Bovespa (0.9669, or very strong)
DJIA to FTSE 100 (0.9495, or very strong)
DJIA to S&P/TSX 60 (0.9347, or very strong)
DJIA to CAC 40 (0.9310, or very strong)
DJIA to Euro Stoxx 50 (0.8534, or very strong)
DJIA to DAX (0.5918, or strong)
DJIA to Nikkei 225 (0.4877, or moderate)
DJIA to RTSI (-0.3966, or moderate)

During the past week, Dow Jones Industrial Average tended to have moved almost equally in one and the same direction with 5 major indices. The strength of such a relationship was the most pronounced between DJIA and the Brazilian Bovespa and the least pronounced between DJIA and Euro Stoxx 50.

Additionally, DJIA tended to have moved strongly in one and the same direction with the German DAX 30 during the period in question.

The correlation between DJIA and the Japanese Nikkei 225, DJIA and the Russian RTSI was moderate.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the Tuesday pivot levels for DJIA are presented as follows:

R1 – 16,803.59
R2 – 16,830.75
R3 (range resistance) – 16,857.90
R4 (range breakout) – 16,939.38

S1 – 16,749.27
S2 – 16,722.11
S3 (range support) – 16,694.96
S4 (range breakout) – 16,613.48

By using the traditional method of calculation, the weekly pivot levels for DJIA are presented as follows:

Central Pivot Point – 16,295.84
R1 – 16,649.30
R2 – 16,826.24
R3 – 17,179.70

S1 – 16,118.90
S2 – 15,765.44
S3 – 15,588.50