US stocks declined on Monday as investors focused on disappointing corporate earnings reports citing weakening demand in China and further validating the corporate effects of China’s slowing economy. While today’s earnings reports may determine market action, sentiment will be based off of the highlights of the week; trade talks between the world’s two largest economies over the next two days and the FED meeting on Wednesday that should clarify the US’s economic path.
The Dow declined by 0.85% to meet key support at 24280 while the RSI reading fell below the 50-midline to enter negative territory. A move past the resistance at 24460 will enable the price to recover and re-test 24590. However failure to do so, will keep the index ranging before deciding on its direction.
Support: 24280 / 24210
Resistance: 24460 / 24590