The Dow futures fell on Monday as China’s poor GDP figures discouraged buyers and held up last week’s rally.
China’s growth amounted to a relatively low figure and reinforced concerns of a slowdown in the world’s second largest economy. Over in the US, the muted consequences of the government shutdown have enabled the market to focus its attention on the positive trade headlines and earnings reports which continue to drive price action in the US market. The Dow index can be expected to react to today’s release of two of its components’ corporate earnings report.
The Dow topped at 24730 before retreating to the 20-period MA. The upside momentum has weakened and a breach of support at 24425 could push the Dow index to 24230. On the other hand, a sustained move above the 20-period MA could have price action range before moving with the upper band.
Support: 24425 / 24230
Resistance: 24740 / 24850