Stocks moved mostly lower over the course of the trading session on Monday, with technology stocks leading the way after seeing considerable weakness late last week. The major averages all closed in negative territory, the Dow sliding 144 points or 0.6% to 25,306. The weakness on Wall Street came as tech stocks saw further downside with most blue chips moving sharply lower. In US economic news, despite the much bigger than expected increase, pending home sales in June were down by 2.5% compared to the same month a year ago, reflecting the sixth straight year-over-year decrease. Looking ahead to the rest of day, overall trading activity is expected to be subdued as traders looked ahead to the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to leave interest rates unchanged, but traders are likely to keep a close eye on the accompanying statement for clues about the outlook for rates.
On the technical analysis chart, we can spot a head and shoulders pattern predicting a bullish-to-bearish trend formation on an hourly chart. However, the main trend is up, and therefore traders are expected to buy the dips around the 25220 and 25115 support areas.
Support: 25220 25115
Resistance: 25430 - 25540