US markets were closed yesterday because of President’s Day holiday and resulted in low trading volume on DOW futures. While the focus resides on ongoing US-China trade negotiations that has catalyzed last week’s rally despite the lack of detailed progress, a backdrop of softer economic data from the US raises concerns over the nation’s economic performance however supports the Fed’s dovish stance that has provided ground for US equities. Today Fed Members Mester speaks and is expected to address the US’s economic outlook and future monetary policy ahead of tomorrow’s FOMC meeting minutes.
A halt in bullish momentum should pause the Dow index’s recent rally and keep it ranging above the 25800 level before testing the resistance at 26080 from which price should accelerate higher . A move below the 25800 level targets the next level of support at 25630 for a short term pullback whilst price remains in a bullish phase.
Support: 25800 / 25630
Resistance: 26080 / 26260