Oil Pullback and Upbeat Earnings Spark Broad-Based Rebound on Wall Street

U.S. equities are pushing higher in Tuesday’s afternoon trade after crude prices retreat from Monday’s spike and a raft of stronger-than-expected earnings rekindles risk appetite. The Dow Jones Industrial Average (DJIA) is up 386.35 points (+0.79%) at 49,328.25. Likewise, the S&P 500 has advanced 70.18 points (+0.97%) to 7,270.93, while the tech-heavy Nasdaq Composite leads with a 283.52-point gain (+1.13%) to 25,351.32.

Dow Jones Industrial Average (INDU)

The Dow Jones Industrial Average is attempting to extend last week’s rebound, yet today’s candle still fits entirely inside Monday’s wide range. Because price remains boxed in, the index might close the day as an inside bar, or Harami pattern. If the index could break out higher the next day, then we might see upward continuation to retest previous record high. Conversely, break below the candle low might trigger a deeper slide toward the Fibonacci Retracement levels and the EMA 100. Therefore, traders are now focused on which side the break will happen.

Kroger Company (KR)

Kroger shares continue to trade between two key moving averages. Because the stock keeps printing slightly lower highs, near-term momentum still tilts bearish. However, a decisive rally through the $68.50 resistance area would negate that bias and open a potential upswing toward $70.00 and, ultimately, the $72.30 region where there is gap. On the other hand, a clean break beneath $65.50 would confirm a fresh lower swing low and bearish continuation. For now, traders will continue to observe the price reactions near the EMA 100 & 200.