US indices traded higher on Thursday with the exception of the Dow as gains were capped by declines in its largest weighted component Boeing. Moreover, Concerns over the outcome of the US-China meeting has left the Dow trading sideways and limits upside price action as market participants remain cautiously indecisive. Separately on economic data, US final 1st quarter GDP matched forecasts at 3.1% while weekly jobless claims rose by 10k however, both had no impact on the market. Today, the US publishes personal spending report and PCE data, the Fed’s preferred gauge for inflation which should further determine the likelihood of the markets’ favored rate cut from the Central Bank. The data should provide direction during the day while caution will be the leading sentiment as markets await trade developments.
The Dow remained within range-bound and ended 10 points lower at 26526 on Thursday as markets await the outcome of the G-20 summit to determine direction. Nonetheless, price action is exhibiting a series of lower intraday highs and lows as it dipped to support around 26430 and failed to re-test the resistance at 26660. Look for a sustained move above 26660 to indicate buying pressure and a sustained move below 26520 to indicate selling pressure with a decline below 26420 required to impair the bullish view.
Support: 26500/ 26420