On Wall Street, the Dow was up almost 400 points before ending the session at 24,527.27 well off its high. Despite positive trade-related headlines and smoothing Sino-US relations, the market is unconvinced and halts what seemed to be a streak of gains for the blue chip Index. A bullish tone in US markets is not expected to be sustained until a solid agreement is made between the two economic giants, and uncertainty looming over European politics is cleared. Recent market action is a result of news driven momentum, thus attention should be drawn to headlines and to the Fed's meeting next week to offer an outlook on rate hikes for the year to come.
The index touched on a high of 24,823 in yesterday’s session, whilst continuing to tread above the 50MA acting as a strong support around 24,530 as it points to key resistance coinciding with the 200MA at 29,941. Bollinger bands tighten and compress the 20MA signaling a period of low volatility, where the index should hover between the constraints of the band before choosing a direction.
Support: 24503 / 24460
Resistance: 24803 / 24941