US indices ended mixed on Wednesday with the Dow trading mostly sideways before ending flat. The most recent US-China trade optimism is now replaced with concerns as news headlines suggest that the so called phase 1 deal won’t be signed until next month. The delay is attributed to China’s condition on the removal of US tariffs and the undecided venue in which the two nations would finalize their agreements. Separately on economic data, US non-farm productivity for the third quarter showed an unexpected decline of 0.3% while unit labor costs rose by 3.6%. Today, the US publishes initial jobless claims data which is likely to have a muted impact as corporate earnings and trade headlines dominate markets’ attention and determine direction.
The Dow traded flat on Wednesday as it closed unchanged at 27492. The price was trading in a tight range bounded by the resistance at 27498 and the support at 27370. This indicates impending volatility from which the Dow will take further direction. A decline below 27370 would confirm a retracement of the rally from 26850. On the other hand, a trade above the Dow’s all time high of 27498 would be required to extend the uptrend in the near-term.
Support: 27370/ 27260