US indices ended marginally lower on Tuesday as investors awaited further cues on US-China trade progress. Moreover, better than expected US home sales and services sector data were offset by news that China lowered its annual growth target, thereby reflecting concerns over the impact of the protracted trade war on the Chinese economy and US corporations. Following yesterday’s directionless session, Wall Street will be looking to today’s US employment figure to direct price action amidst a lack of news on Sino-US trade relations.
The Dow Index traded sideways within a range bound of 25720-25880 before closing at 25806 on Tuesday. While the Dow has displayed short-term weakness since it peaked at 26237, the support at 25620 is what is separating the index from further downside pressure. On the other hand, the resistance at 25880 is the first barrier to overcome before bullish price action can re-emerge.
Support:25620 / 25520
Resistance: 25880 / 26080