The Dow index broke its 3-day losing streak as it ended 0.43% higher on Friday. Positive headlines regarding US-China trade progress helped offset a decline in US manufacturing data and consumer sentiment. With no major data releases for today, investors should follow the theme of trade optimism as they pin their hopes on news speculating that a trade deal, Wall Street’s current catalyst, may soon materialize after 2 months of trade tensions.
The DOW index came off Friday’s high to close at 26026. Sustained price action above the 26060 level would signal the presence of buyers while a trade through the resistance at November’s high around 26240 would be needed to signal the resumption of the uptrend. While the overall outlook on the index remains bullish, a move below the support at 25870 would indicate short term weakness and target the 25750 level.
Support: 25960 / 25870
Resistance: 26240 / 26380