Friday, September 20, 2019



Fundamental Highlights

US indices ended mixed on Thursday with the Dow being the only index to end 0.19% lower as the Fed’s decision to cut rates didn’t suffice in recovering risk appetite. In terms of data, both existing home sales and Philly Fed Manufacturing index figures came in better than expected and weakens the outlook for future monetary policy easing. Two Fed members are scheduled to speak later today from which market participants will be seeking hints at an easing bias to help buoy US equities. There are no major economic releases from the US to provide direction today. This will leave influence on price action to Fed members’ policy remarks and trade headlines as the US and China have begun their two day deputy level trade discussions.

Technical Analysis

The Dow reached a high of 27268 in yesterday’s session before edging lower to lose 52 points and end at 27094. The price continued its range-bound price action as the RSI reading remains around the 50-midline to indicate indefinite direction. Look for a sustained move below the 50-period MA and a subsequent break of the 27000 support level to pressure the Dow towards the support at 26900 and 26800. Holding above the 27000 level would leave the Dow ranging with a sustained move above the 50-period MA around 27090 required to indicate buying pressure and lead the Dow towards the 27190 level and yesterday’s high.

Support: 27000/ 26900
Resistance: 27190/ 27320

Chart (H4)