The Dow ends yesterday’s session 0.29% higher at 24,597.38. The week started off volatile for the Index and improved as investors’ weigh news of easing Sino-US relations. However hopes of continuous progress could be undermined by today’s earlier release of weak Chinese economic data, thus raising concerns over the pressure of the US-China trade dispute on the world’s second largest economy and global growth. With no major headlines in the picture, we look to today’s US data reports to reflect the country’s economic growth and direct the stock market.
The technical outlook is bearish for the Index, however the Dow has remained below the 100 MA forming a series of highs and lows bounded by parallel zones of support and resistance exhibiting a period consolidation and neutral bias in the short term. The RSI drops below 50 indicating a bearish disposition for the index before making further bounces off of zones of support at 24,343 and resistance at 24,842.
Support: 24234 / 24132
Resistance: 24851 / 24986