US indices ended lower on Monday with the exception of the Dow owing to Boeing’s bolstered share price. The rise was due to the company stating it would resume delivering its 767 MAX jets. Meanwhile, uncertainty on whether a phase one deal between the US and China will be finalized alongside the removal of tariffs limits the upside potential. Today there are no major US economic releases and attention will turn to speeches by Fed members for further insight on the course of future monetary policy. Moreover President Trump is scheduled to give a speech today and markets will be mostly concerned with what he has to say about the US-China trade situation as it remains the dominant driver of price action.
The Dow’s minor uptrend remains intact as it gained 10 points to end at 27691 on Monday. A brief pullback to the support level at 27480 was met with buying pressure and led to the formation of a higher lower. To confirm the continuation of the trend, the price would have to break through the all-time high at 27742 and advance to higher levels. A sustained move below 27600 would indicate selling pressure while a trade below 27480 is required to signal further weakness.
Support: 27600/ 27480