Dow ends mixed after a 2-day rally of 2.6%

After two consecutive days of 100-plus point gains, DJIA took a breather last night (-6 pts to 9725.6) as investors wait for Q3 corporate earnings reports to start rolling in the absence of any major economic news. The earnings season got off to a good start with Aluminum maker Alcoa Inc, the first of the Dow Jones constituent members to report results, beats analyst estimates to return to profitability following three losing quarters, providing a good start to the earnings season. Alcoa also expects global aluminum consumption to increase 11% in the 2H09. We expect the Dow’s mid-term positive trend to stay intact, with the next resistances being 9918pts (recent Sep 23rd high) and the psychological 10,000pts mark which is now only 274pts away. The 30-day SMA line continues to provide meaningful support at 9617pts, having been tested twice last month and proven its resilience on both occasions