Tuesday, September 3, 2019



Fundamental Highlights

US equity futures declined on Monday’s US Labor Day Holiday as the prospect of resumed trade negotiations failed to offset the impact of US-China tariffs going into effect over the weekend. Today the US publishes manufacturing PMI figures which may impact price action during the day as it provides further insight into nation’s economic performance. Apart from the data, traders should continue to monitor trade headlines as it impacts the global economic outlook and determines market sentiment.

Technical Analysis

Dow futures continued to retreat since recording the high at 26555 near the 50-day MA as it declined by over 300 points on Monday. The price briefly dipped to the low of 26150 however managed to find support at 26175 as it is currently trading above this level in attempt to push above the 26280 level near the 100-day MA. The weakening of Dow futures may only be a brief pullback before price re-tests the 26550 resistance level near the 50-day MA which would enable further gains if broken. Thus, look for a sustained move above the 26280 level to indicate buying pressure with a trade above the 26420 level required to drive the Dow towards 26550. On the other hand, failure to trade above the 26280 level near the 100-day MA would maintain selling pressure, with a break below 26175 required to suggest further downside pressure.

Support: 26175/ 26080
Resistance: 26300/ 26420

Chart (H4)