The Dow index traded 38 points lower to close at 25390 amidst mixed corporate updates on Wednesday. US trade balance report for November came in better than expected however failed to impact price action as US-China trade war remains unresolved and at the forefront for global markets. Moreover, Fed Chairman Powell’s speech came after US markets closed and had little effect on the index as no remarks were made regarding monetary policy. Given the global growth slowdown, the Fed’s dovish stance along with strong earnings reports can only take the bull market far enough before fundamental outlook changes.
The DOW index paused its streak of gains as a doji candle formation on the daily chart suggests buying pressure may have been exhausted. While the index remains in positive territory, the price may range before extending the rally above the resistance at 25370. So long as price remains supported by the 20-period MA at 25320, a downside move remains unlikely.
Support: 25220 / 25150
Resistance: 25370 / 25490