July 25, 2019 | SQUARED DIRECT – US indices ended mixed on Monday with the Dow Index being the only under-performer as it was weighed down by disappointing earnings results from its members Boeing and Caterpillar.
Meanwhile, improved sentiment towards the US-China trade dispute and better than expected earnings results from the tech sector has made room for gains on Wall Street despite dismal economic data. The US manufacturing PMI figure declined to 50 in July to sit on the edge of contraction territory. Today the US publishes durable goods orders and jobless claims, and its impact on the day may be overridden by corporate earnings.
Dow Jones technical analysis
The Dow index trimmed gains from the previous sessions as it ended 0.29% lower at 27269 on Wednesday. The price fell through the support at 27270 and below the 20-period MA to record an intra-day low of 27167.
Today, look to the 20-period MA at 27230 to determine near-term direction. A sustained move above 27230 would indicate buying pressure while holding above 27270 would give the Dow a chance to break above the resistance at 27330 and re-test its all-time high at 27388. Meanwhile, a sustained move below 27230 would indicate selling pressure with near-term support found at 27170 followed by 27100.
Support: 27230/ 27170
Resistance: 27350/ 27388
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