The DOW ended Friday 1.4% higher on a report that China is looking to decrease the US’s trade deficit by ramping US imports helping the blue-chip index wrap up another week of solid gains. The news validated the significance of the trade spat between the world’s two largest economies as markets may be pricing in an optimistic deal despite a lack of clarity. Moreover, the impact of the continuous US government shutdown remains unclear, and worries over the nation’s economy are temporarily substituted by optimism surrounding US-China trade relations and decent corporate earnings. The US stock market is closed today in honor Martin Luther King Jr. Day and will resume tomorrow.
The Dow index broke past resistance 24425 on Friday and continued to rise with the upper band. The next target for bulls would be the resistance level 24850 . A sustained move above 24300 at the 20-period MA, should keep the uptrend safe though price action may range lower before continuing its direction. Due to the US stock market being closed today, we might see limited price action on the Dow futures.
Support: 24470 / 24310
Resistance: 24740 / 24850