U.S. indices rallied with US tech stocks leading the rebound as trade tariffs were not as severe as initially feared. China applied duties of up to 10% on $60bn of American imports which was deemed much less than expected as a retaliation to the 10% tariffs from US on $200 billion worth of Chinese imports which will take effect from Sept 24th, 2018 and may be readjusted to 25% at the end of the year. China also readjusted its stance and will instead put a 10% tariff on goods previously designated for a 20% levy.
The Dow rallied during Tuesday's session creating new resistance and support levels. During today's session the index may have a bullish move towards the 26317 figure where it may break it and move further in the direction of the 26350 area. The Dow remains a strong buy during Wednesday's session.
Support: 26106 25968
Resistance: 26317 26350