The DOW index posted its third day of losses on Friday with a decline of 0.25% as trade worries crept back into the market with the news that President Trump will not meet President Xi ahead of the approaching March trade deal deadline. Moreover, a deteriorating global economy poses the question of whether the slowdown will find its way into a seemingly resilient US economy while the possibility of another government shutdown looms as border security talks saw no resolution over the weekend. There are no major data releases scheduled for the day and sentiment will be determined by any advancements in the above-mentioned themes.
After briefly slipping below the 25000 level to test the 100 day MA at 24870, The Dow index managed to close above it at 25106 keeping it in positive territory. Price will have to trade through the 20-period MA to indicate the resumption of buying pressure while it ranges above the psychologically significant level of 25000. A break below that level will indicate bearish price action with a strong support coinciding with the 100-period MA at 24790.
Support: 25000 / 24860
Resistance: 25140 / 25250