Current trend

The Dow Jones index is correcting in the local trend at 39714.0, trying to continue the uptrend before the start of the corporate reporting period.

Today, beverage manufacturer PepsiCo Inc. will publish its financial results: analysts expect that the company's revenue will reach 22.66 billion dollars, exceeding 18.25 billion dollars in the previous quarter, as well as 22.32 billion dollars recorded over the same period a year earlier. Earnings per share could be 2.16 dollars, which is also up from 2.09 dollars last year.

Tomorrow, the market will receive quarterly reports from the giants of the banking sector, from which stable results are expected. So, JPMorgan Chase & Co. banking holding is projected to show revenue of 41.72 billion dollars, which is higher than the 41.3 billion dollars shown in the second quarter of 2023, and earnings per share (EPS) may decrease to 4.14 dollars from 4.37 dollars previously. In turn, Wells Fargo & Co.'s quarterly profit is expected to increase to 1.28 dollars per share from 1.25 dollars last year, and revenue is likely to decrease to 20.22 billion dollars from 20.53 billion dollars over the same period a year earlier.

The correction continues in the bond market: today, 10-year securities are trading at an income rate of 4.291%, which is almost identical to last week's rate of 4.293%, and the yield of 20-year bonds has adjusted to 4.588% from 4.576% earlier.

The growth leaders in the index are The Home Depot Inc. ( 2.10%), 3M Co. ( 1.99%), The Travelers Companies Inc. ( 1.99%).

Visa Inc. Class A (–0,92%), The Walt Disney Co. (–0,11%), Salesforce Inc. (–0,03%) stand out among the leaders of the decline.

Support and resistance

On the D1 chart, the index quotes continue their corrective dynamics, moving further away from the support line of the channel with the boundaries of 41000.0–38700.0.

Technical indicators have already reversed around, holding the buy signal: the range of fluctuations of the EMAs of the Alligator indicator is expanding, and the AO histogram forms new correction bars, holding above the transition level.

Support levels: 39430.0, 38400.0.

Resistance levels: 40000.0, 40800.0.

Trading tips

If the asset continues to grow, buy positions will be relevant, which can be opened after overcoming the resistance level of 40000.0 with the target of 40800.0 and stop-loss of 39600.0. Implementation time: 7 days and more.

In the event of a reversal and the beginning of a decline in the asset, as well as price consolidation below the support level of 39430.0, sell positions with the target of 38400.0 will be relevant. Stop-loss – 39800.0.