US indices had a mixed session on Thursday as trade concerns resurface and limits risk appetite. Expectations of a phase one trade deal are fading as the US and China fail to reach agreements and leave potential progress halted. However, US indices prove to be resilient as they continue to avoid the subsequent correction from their rallies. Today, economic data should influence as the US releases NY manufacturing Index for November and industrial production for October. In addition, retail sales data for October that is expected to be most impactful as it reflects US consumer spending. Apart from the data, traders should continue monitoring trade headlines for direction.
The Dow closed 2 points lower at 27781 on Thursday. The index slipped to find support at the 27640 level near the 20-period MA before trimming losses. Today Dow futures are pointing higher and trading above the peak at 27808 while the daily RSI reading has reached the overbought territory suggesting a possible reversal. The minor uptrend remains intact with the formation of higher lows and higher highs. Look for a sustained move below the 20-period MA to indicate selling pressure a break below the 27500 level to impair the bullish outlook.
Support: 27710/ 27650