The Dow Jones 30 rallies as Republicans are favoured to win the midterm elections. The index slowed down near 33000, at the start of a sell-off in late August. Profit-taking was not enough to drive the price south, which suggests robust pressure from the buy side. A close above 33000 would shake out remaining selling interests and pave the way for a rally to August’s peak at 34200, which is the boundary between a bear and a bull market. In the meantime, an overbought RSI may limit the upside with 32400 as the closest support.
