The Dow index posted a second day of losses as Fed Chairman Powell concluded his two day testimony while investors turned cautious over the uncertainty of US-China trade relations. US trade representative weighed on the prospects of a trade deal as he reminded markets that recent trade progress isn’t adequate in ensuring an agreement will be reached between the two economic powerhouses. Moreover, US Q4 GDP data is due today and will be a market mover as it reflects the nation’s economic conditions whilst factoring in the 35-day government shutdown.
The Dow index ended lower at 25985 after it rebounded off intraday lows. The Index has retreated since reaching Monday’s high of 26238 and is looking to break the bullish trend line which would make way for downside pressure. Sustained price action below the 50-period MA alongside a break of yesterday’s low at 25872 would signal short term weakness while the potential for a reversal in price action could rely on the break of support at 25760.
Support: 25870 / 25760
Resistance: 26080 / 26160