US indices moved slightly higher yesterday, with the Dow gaining over 70 points before ending virtually flat at 25891. A dovish Fed had cleared the way for the rally on Wall Street, while hopes of a US-China trade deal continues to drive equities higher alongside positive US earnings reports. Fed member Mester revealed that a rate hike will be considered should economic data demonstrate continuous growth in the domestic economy while uncertainties surrounding Sino-Us trade relations and slowing global growth persist as risks. Investors will look to today’s FOMC meeting minutes to shed further light on future monetary policy.
The Dow Index consolidates as it struggles to extend gains past the psychological level at 26,000. Taking out the resistance at 26080 will signal a resumption of the uptrend, while a trade through the 20-period MA around 25800 should signal a short term pullback with immediate support found at 25630
Support: 25800 / 25630
Resistance: 26080 / 26260