Monday, September 9, 2019



Fundamental Highlights

US indices ended mixed on Friday as the monthly jobs report came in mixed. The data showed that US employment is slowing as payroll figures came below expectations and unemployment remained steady at 3.7% while wages growth rose by 0.4% MOM. On monetary policy, Fed Chairman Powell reiterated his willingness to sustain economic expansion thereby supporting expectations for a rate cut this month. Today there are no major economic releases out of the US to provide direction during the day. Traders should continue to monitor US-China trade headlines to influence global sentiment and price action as we may see trade optimism which has underpinned US equities gradually fade.

Technical Analysis

The Dow posted a modest gain of 69 points to end at 26797 on Friday. Today Dow futures are pointing higher as price is attempting to trade above Friday’s high at 26866. Look for a sustained move above 26866 to maintain buying pressure and target the 26920 level followed by 27000. Note that the RSI reading is once again within the overbought territory suggesting that bullish momentum may stall and price turns lower with immediate support found at 26685. A decline below this level would lead the Dow towards the support at 26550.

Support: 26685/ 26550
Resistance: 26920/ 27000

Chart (H4)