Thursday, October 17, 2019



Fundamental Highlights

US indices ended slightly lower in a lackluster trading session on Wednesday as US economic data hindered any upside potential. US retail sales figures came below estimates and showed an unexpected decline in September. The data overshadowed better than expected earnings reports out of US corporations and raised concerns over a weakening domestic economy. This will turn attention to today’s data as the US publishes building permits, housing starts data and more importantly the Philly Fed Manufacturing Index. On the US-China trade front, there is not much to buoy market sentiment as the two nations have yet to confirm their phase 1 deal and comply with its terms to make way for further progress. Traders should continue monitoring trade headlines and look to the slew of US economic data to influence price action today.

Technical Analysis

The Dow failed to extend its rally and ended slightly lower on Wednesday as it declined by 22 points to close at 27001. The price was ranging below its previous closing price and above the 26880 level currently near the 20-period MA. Failure to edge above 27000 would maintain selling pressure with a break below 26880 required to drive the index towards the support provided by the 200-period MA at 26740. On the other hand a sustained move above 27000 would be required to indicate buying pressure while taking out the high at 27084 would signal a bullish continuation and target the 27110 level.

Support: 26880/ 26740
Resistance: 27000/ 27110

Chart (H4)