The Dow Index fell 300 points in its first trading day of the week as the market reacted to a report claiming that a meeting between the US and China has been cancelled. Later in the day the index rebounded off its low after the US assured trade negotiations were still on, however recent trade optimism has been muted. With Sino-US trade relations at the forefront of global growth concerns, this week’s corporate earnings will continue to be the consolation the market seeks to potentially offset the pessimism and extend the rally in the US stock market.
The Dow Index extended its downward course and is ranging below the 20-period MA . However, the formation of a hammer candlestick suggests that buyers were able to overcome selling pressure and may push price action above resistance at 24520 to meet the upper Bollinger band. Alternatively, a sustained move below support of 23340 should take the index to lower support levels .
Support: 24340 / 24210
Resistance: 24520 / 24740