The Dow had a very volatile session yesterday moving in a 300-point range before edging down 27 points to close at 25339 thus bucking the uptrend. The slightly lower close came after the minutes of the Fed's monetary policy meeting seemed to reinforce expectations for another quarter-point increase in interest rates next month. The Fed noted a near-term rate hike would be dependent on incoming information on the labor market and inflation coming stronger than current expectations. Looking ahead, the economic calendar is relatively quiet on this last day of the week, although traders will be keeping an eye on the G20 summit and the developments on the US-China trade front.
The Dow closed lower yesterday, unable to hold early session gains, forming a Northern Doji which is known as a bearish pattern, thus setting a negative tone for today's trading session. The RSI also looks bearish signaling some downside action ahead for the next few hours, however, prices are trading close to key technical and psychological support level at 25000 as the medium to long term trends are still clearly bullish.
Support: 25000 / 24300
Resistance: 25275 / 26190