US equities market react dramatically to news on the arrest of the chief financial officer of Chinese company Huawei as it threatens a prospective tariff resolution between the US and China and adds to the underlying tension between the two economic giants. The DOW index drops 785 points before redeeming itself and closing down 0.3% at 24,947.67 following a report hinting that the Fed will halt rate hikes as it alters to a data conscious approach consequently relieving the stock market before it ended yesterday’s session. Moreover attention is turned to US employment figures today to clarify economic strength alongside a concerning flattening yield curve.
After a deep plunge since the start of the month, Dow Jones index bottomed at a key support of 24,234 forming a hammer candlestick pattern that could indicate the end of its downtrend as buyers were able to overcome selling pressure. Near support is found around 24,440, Should the index break above the 200 MA at 25,130 , it looks to 25,300 as its next resistance level.
Support: 24400 / 24245
Resistance: 25180 / 25300