The Dow Jones traded lower on Friday and broke its recent streak of gains despite the Fed’s dovish stance on rate hikes for 2019. The week ahead stores earnings season reports, comments from Fed members and inflation reports that are likely to impact the market’s direction. Any developments on the headlined US government shutdown, US-China trade relations and China’s slowing economy should determine how far the rally can go.
The Dow Index is trading within Friday’s range as Bollinger bands begin to tighten, suggesting impending volatility and indecision confirmed by a doji candle formation on the daily chart. The index failed to break past resistance zone of 23990/24000 corresponding with the 200-period MA, and should range within the bands before deciding whether it will retest 23990 or sustain price action above support at 23660. Meanwhile, The RSI is hovering around 50 and a move well past the mid-line will further determine direction.
Support: 23680/ 23540
Resistance: 23850 / 23960