US Indices ended higher on Wednesday with the Dow Index barely lifted as it gained 7 points. Market participants waited cautiously ahead of the FOMC meeting and the account remained dovish which left Wall Street more pleased than apprehensive about the mentioned concerns over the flattening treasury yield curve and global trade uncertainty. Moreover, the health of the US economy remains in question given the mixed economic reports and the likes of yesterday’s data which showed a rise in headline CPI and a decrease in core inflation figures. Today, the US publishes PPI data and a slew of Fed members are scheduled to speak while traders are likely to keep on their toes ahead of tomorrow’s earnings reports which will be a main driver for US equities in the near-term.
The Dow traded sideways on Wednesday within a range of 26190-26080 before ending at 26157. Price should continue fluctuating within this range with the 20-period MA around 26200 acting as a dynamic resistance and an indicator of near-term direction. Trading above this level would indicate buying pressure and suggest a higher move towards resistance at 26260. Alternately, holding below the 20-period MA combined with an RSI reading holding below the 50-midline could trigger a break through the support at 26080 to extend the pullback and target lower support levels.
Support: 26080/ 26000
Resistance: 26260/ 26340