US indices ended higher on Tuesday at the back of renewed trade optimism and better than expected corporate results. The Dow Jones Index traded 0.65% higher as two of its constituents published upbeat earnings report while positive sentiment stemmed from the prospect of US-China trade progress as the two nations are set to meet and resume talks next week. Meanwhile, US economic data was the overshadowed disappointment of the day as existing home sales continued to decline. Today, the US publishes Manufacturing and Services PMI figures alongside New Home Sales data. Negative reports would further support the prospect of easier monetary policy ahead of next week’s interest rate decision. Moreover, Caterpillar and Boeing are set to report earnings and as significant members of the Dow index are likely to hold a strong influence on Wall Street.
The Dow posted a strong gain of 177 points to end at 27349. The price traded and held above the 27220 to advance slightly above the resistance at 27330. Today, look to the 27270 level to provide immediate support on the Dow’s record high territory, while holding above the resistance at 27330 will enable price to re-test its all-time high at 27388. A move below 27270 would lead price towards the support at 27220 coinciding with the 20-period MA.
Support: 272700/ 27220
Resistance: 27350/ 27388