The Dow Index ended 0.18% lower on Monday as markets brace for a notable week of earnings reports from major corporations, particularly in the tech sector, and await the US’s first quarter GDP figure on Friday to assess the performance of the economy. In terms of data, The US will follow through yesterday’s housing data which showed a decline in existing home sales and will publish later today new home sales report. For the time being, economic data remains in the shadows of earnings reports which should drive immediate price action alongside US-China trade headlines.
The Dow edged higher towards 25600 before it dipped to end at 26511 on Monday. The technical outlook remains bullish with a trend line off of recent lows providing support for further gains on the Dow. The RSI reading has managed to hold above a corresponding trend line, however breaking through it combined with a decline below the 26440 level would suggest a turn lower. Meanwhile, holding above the 26525 level would be required to indicate the presence of buying pressure and target a higher resistance at 26680.
Support: 26440/ 26360
Resistance: 26600/ 26680