The Dow Index ended 0.2% higher at 25954 after the release of the FOMC meeting minutes reaffirming the Fed’s dovish stance on rate hikes. Their data driven-approach on monetary policy bears the question of whether a rate hike will depend more on rising inflation than continuous economic growth. While US-China trade talks continue to buoy sentiment, a slew of US economic reports on manufacturing data, home sales, and durable goods order will garner investors’ attention.
The Dow index exited its ranging period to end slightly short of the 26000 mark. The price has yet to take out the resistance at 26080 to move higher. However, the daily RSI reading has entered the overbought region suggesting an extended upside move and a potential pullback on the uptrend. While the RSI trend line continues to support bullish price action, its break will indicate a potential reversal with immediate support found at the 25630 level.
Support: 25950 / 25800
Resistance: 26080 / 26260