The banking sector continued its release of earnings reports as Goldman Sachs and Citigroup published mixed results on Monday with better than expected earnings however a decline in revenues which led US indices lower and to a tepid start to the week. Nonetheless, Risk appetite remains intact as traders await today’s earnings reports and further clues on US-China trade progress to direct price action. On today’s data front, US industrial production is due ahead of significant data this week which should influence sentiment while corporate updates remain the main driver for US equities.
The DOW Index edged 0.1% lower to end at 26384 after price approached the support zone at 26280 within the day. While the uptrend remains at play as price holds above the 20-period MA , the price is within a range bound and it will depend on positive earnings reports to muster bullish momentum and drive the DOW past the resistance at 26470 to point towards higher levels. Failure to trade above this level should leave the index trading sideways with a breakthrough near-term support at 26315 required to suggest a lower move.
Support: 26315/ 26280
Resistance: 26470/ 26540