US Equities came under pressure over the course of the trading session on Monday, sliding as the session progressed and eventually ended with sharp losses. The sharp pullback came after report from Bloomberg said the US is preparing to announce tariffs on all remaining Chinese imports if next month's talks between Presidents Donald Trump and Xi Jinping fail to ease the trade war. Energy stocks also tumbled after crude oil prices drifted lower on demand growth concerns. The Dow closed down 245 points. Further news regarding another round of tariffs on Chinese imports may impact trading today along with a report on consumer confidence in the month of October. On the earnings front, Coca-Cola, General Electric, MasterCard, and Pfizer are among the companies releasing their quarterly results before the start of trading today.
Moving lower for the 2nd day in a row, the Dow ended Monday at 24442 marking the lowest recorded closing price since July 5th. Prices broke briefly below key technical support level at 24410, which is likely to act as resistance going forward. The index confirmed its breakout through this support level after trading up to $323 below it intraday. Altough we bounced back slightly above it, the trend now is clearly bearish in the short and medium terms.
Support: 24444 / -
Resistance: 24795 /25000