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  • All 11 major sectors close  the day in the positive territory.
  • Materials & industrials lead the gains on Tuesday.
  • Energy underperforms on crude oil sell-off.

Major equity indexes finished the day with modest gains on Tuesday as all 11 major sectors closed in the positive territory to reflect a  positive market sentiment ahead of the midterm election results.  According to the reports, 35 million early votes were cast in today’s election compared to 20 million in 2004 and a record voter turnout is expected, which makes it difficult for experts to predict the outcome.  

Boosted by  Chinese Vice President Wang Qishan’s remarks about  Beijing being ready to hold discussions and work with the United States to resolve the trade conflict, the trade-sensitive S&P 500 Materials and the S&P 500 Industrials indexes rose 1.5% and 1.1%, respectively. “Tariffs and interest rates pose the biggest threat to stocks in the next six months. I do not want to see a tariff war, that would be bad for the economy and the market. It would diminish some of the effect of high corporate earnings,”  Bel Air Investment Advisors Chairman Todd Morgan told Reuters.

On the other hand, the ongoing crude oil sell-off didn’t allow energy shares to record decisive gains and the S&P 500 Energy Index added only 0.35%.

The Dow Jones Industrial Average rose 175.41 points, or 0.69%, to 25,637.11, the S&P 500 added 17.19 points, or 0.63%, to 2,755.5, and the Nasdaq Composite gained 47.11 points, or 0.64%, to 7,375.96.

DJIA technical outlook by FXStreet Chief Analyst Valeria Bednarik

The Dow is now bullish according to technical readings in the daily chart, as it extended its advance further above the 20 and 200 DMA, both directionless, to settle little below a bullish 100 DMA. Technical indicators in the mentioned chart have advanced into positive ground, maintaining firm bullish slopes.

Shorter term, and according to the 4 hours chart, the risk is also skewed to the upside, as the index met buyers on intraday slides toward a bullish 20 SMA, while technical indicators present strong bullish slopes at fresh weekly highs well into positive ground. The 200 SMA in this last time frame, however, presents a bearish slope, acting as dynamic resistance at around 25,767. The Dow has been developing below this last for almost a month, and gains beyond it should favor an upward extension, although upcoming direction will depend on the US elections results.,

Support levels: 25,619 – 25,555 – 25,473.

Resistance levels: 25,722 – 25,767 – 25,831.