The Dow index, up 0.23% on Monday, reached a high of 26241 before retreating to close at 26091. Trump’s decision to postpone date of Chinese tariffs set off a bullish reaction in the market as it signaled easing tensions and progress over the protracted Sino-US trade war. In economic news, CB consumer confidence and housing figures are to be released today ahead of Fed Chairman Powell’s hearing with Congress. Investors will be looking for fresh clues from economic data to Powell’s remarks on monetary policy and the US’s economic outlook to impact price action.
The DOW Index climbed to a high of 26241 before retreating to close above key resistance level at 26080. Price respected the overbought conditions on the RSI and has moved lower towards the 20-period MA around 26,000 as bullish momentum weakens. While the technical outlook remains positive, a trade through the 20-period MA should signal short-term weakness with immediate support found at the trend line coinciding with the 50-period MA at 25850.
Support:25950 / 25750
Resistance: 26240 / 26380