The market assumes that the Fed will choose today to increase its official interest rates by a quarter of a percentage point (0.25%).

During the last 28 hours, Wall Street has had a strong technical rebound. The Dow Jones-30 industrial index (#INDU) has recovered more than 1,000 points in the last few hours, showing some optimism in the risk sentiment. The improving sentiment comes on hopes for a diplomatic solution to the war between Russia and Ukraine.

This strong bounce of the DJ30 has caused a breakout of the 21 SMA and the symmetrical triangle pattern that has been forming since early March.

Currently trading below the 21 SMA located at 33,955, the index is likely to find strong resistance there and it could make a correction with targets at 3/8 Murray at 33,593 and towards the 21 SMA at 33,250.

Conversely, a close above the psychological level of 34,000 on the 4-hour chart could extend the move higher and reach 4/8 Murray at 34,375 and towards the top of range of 5/8 Murray at 35,156.

The main trend is downward according to the daily chart. Trading through 34,050 will be the start of a major trend reversal to the upside and the price could hit 5/8 Murray at 35,156.

Trading through 33,200 will signal a resumption of the downtrend and the price could reach the support 2/8 Murray at 32,812.

The eagle indicator is giving a positive signal, so it is likely that a correction around 35,593 or 33,300 will be an opportunity to continue buying the DJ30 with targets at 34,375. On the other hand, a sharp break above 34,050 will also be an opportunity to buy with targets at 34,375 and 35,156.