DJIA VIX - DJIA Volatility Increases Before U.S. Elections - 11/08/2016 (GMT)

Dow Jones Industrial Average returned above 18050 with a gap to the upside after the sharp sell-off that dropped the index at the 17880 support level. The index climbed 2.16%, +240 points up and reached the 18290 resistance barrier following the pullback from the 18050 support barrier. Currently, the index is developing above the 50-daily SMA and is approaching the last record high posted one month ago near 18290. A penetration to the upside of the latter level will expose the price until the 18405 strong handle. Otherwise, if the index slips below the 18050 level, it will meet the next level at 17950.

The technical structure suggests further upside momentum since both are moving near the overbought area. The MACD oscillator holds above its trigger and zero lines, while the RSI indicator is flattening below the 70 level. Also, the volatility increases as the U.S. elections are about to end, so traders must be cautious.