US equities fell yesterday led by the financial sector after the Fed decision was deemed disappointing and less hawkish than expected. FOMC hiked rates by 25 basis points as expected and stayed on course for another hike December. Powell sounded upbeat about the economy, labor market, dismissed political interference with Fed functioning and highlighted the chorus of noise around trade risks but yet to show up in data. A couple of deviations from an otherwise hawkish decision and outlook is the removal of the word "accommodative" from the statement and upside risks to inflation remains contained. Trump accused China that they are trying to interfere in the US congressional elections/mid term elections in November but provided no evidence at a UN Security Council meeting where he first delivered the allegation. His remarks came after China placed an advertising supplement in Iowa’s largest newspaper attacking Trump’s trade war with China. China’s vice foreign minister Wang Yi denied the claims in the Security Council meeting as he rejects the unwarranted accusations against China.
As from the start of the week, the Dow continued to see a bearish move during Wednesday's session. The index may continue in a downward move during today's session towards the 26263 level. During Thursday's session the Dow seem to be a strong sell.
Support: 26263 26112
Resistance: 26572 26666