US indices traded lower on Thursday amidst weaker economic data from the US and ongoing US-China trade negotiations. This comes a day after the US-China trade talks reportedly progressed by outlining a deal and the FOMC meeting minutes reaffirmed the Fed’s pause on rate hikes as they monitor the economy’s performance. However, disappointing declines in manufacturing activity, core durable goods order and existing home sales suggested slowing growth in the US and gave the market a reason to drop back. Today, Investors will look to speeches from Fed members for further hints on the US’s economic outlook.
The Dow Index reached December’s high of 26080 before retreating to end at 25850. While the bullish trend remains intact, Price will have to take out the key resistance level at 26080 to see a continuation of the uptrend with its next target resistance at 26260. A signal of selling pressure comes into play should the RSI reading decline well below the 50-midline and price break below the 25800 level to find support around the 50-period MA.
Support: 25800 / 25670
Resistance: 26080 / 26260