Wall Street’s major indices managed to end higher on Thursday as the Dow rose by 0.47%. Initially, the blue-chip index tumbled following a weaker than expected ISM non-manufacturing PMI figure however was able to gain ground later in the session. Today’s economic releases will have an equally strong impact on the day as the US publishes its monthly employment report which includes non-farm payrolls, unemployment rate and wages growth. Apart from economic data, trade headlines and geopolitical updates will remain key drivers of price action and determinants of markets’ currently weak sentiment due to global growth concerns.
The Dow staged a rebound on Thursday as it gained 122 points to end at 26201. However, weak economic data prompted a brief drop to an intraday low of 25710 before the Dow traded higher while the RSI reading eased off the oversold territory. Dow futures are currently attempting to hold above the 26225 level in order to target the higher resistance at 26280 and 26350 near the 20-period MA. Failure to do so, would leave price ranging, with a sustained decline below 26130 required to indicate selling pressure and lead price to the lower support levels at 26000 and 25920 near the 200-day MA.
Support: 25900/ 25720
Resistance: 26220/ 26350