Wall Street recovered on Thursday despite macroeconomic concerns as positive updates in the technology sector led a 0.85% rise in the DOW Index. On the economic front, A day after the FED’s downgraded economic projections raised concerns over weaker domestic growth while clearing the headwind of rate hikes for US equities, Philadelphia Fed’s manufacturing index came in well above the estimate and in positive territory indicating an improved business outlook while jobless claims fell below expectations. On today’s data front, US publishes existing home sales and manufacturing data as the bulls seek positive news to propel the index past the 26,000 psychological resistance.
The Dow Index initially traded through support at 25670 to reach a low around 25580 before erasing losses and surging to close at 25962 on Thursday. Maintaining above the resistance level at 25950 increases the chances of breaking through psychological resistance at 26,000 from which the DOW could extend further gains should it break through this week’s high around 26120. Failure to surpass the 26,000 level will draw the formation of a lower high on the chart and suggest a downside move that would be confirmed by a corresponding lower high on the RSI trend line.
Support: 25780 / 25650
Resistance: 26000/ 26140