The US Stock market saw a lift earlier in Wednesday’s session following upbeat housing figures ,hopes of a dovish Fed and growing optimism around global trade news that the US and China will set up a meeting next month to serve trade relations. However, the Fed delivered its anticipated rate hike sending the Dow Index 1.49% lower. The statement made by Jerome Powell failed to give stocks some ground as projections for future hikes in 2019 mount fears of a slowing economy. Traders can look to US’s Fed Manufacturing Index due today to move the market as it reflects US business conditions.
The Dow continues to fall as the market processes fears of economic slowdown, with an RSI reading below the 30 mark. Following yesterday’s bearish reaction, the index may rebound to 23514 below the 20-period moving average at 23730 as the falling ADX line signals slowing momentum whilst maintaining a strong reading on the downtrend. Despite oversold conditions, the trend strength could push the Index to lower support level at 23057. Today’s Manufacturing Index should determine the way for the Index’s moves.
Support: 23075/ 22885
Resistance: 23517 / 23730