Dow Jones: Futures Marginally Up As Markets Await US-China Trade Talks
Dow Jones futures started the day initially lower after airline stocks suffered some shocks as Delta Airlines released mixed Q3 earnings. However, Dow Jones futures have recovered some of those losses on the back of an uptick in Apple stocks. Apple stocks were upgraded by a major bank after it agreed to remove an app that anti-government protesters have used to track police activity in Hong Kong.
The Dow Jones Industrial Average has also opened higher and is pushing towards the 26340 mark (as at the time of writing). The US-China trade talks have kicked off, with Chinese Vice-Premier crossing the newswires as saying that China is willing to reach agreement on matters that close to both sides to prevent further escalation in the trade impasse.
This comment among others, is viewed as a positive for the trade talks and has engineered positive sentiment on the Dow.
The Dow’s bounce from intraday lows continues to obey the support provided by the lower border of the rising wedge on the weekly and daily charts. Most of the fundamental influence for the rest of the week will come from the US-China trade talks. Therefore, the situation remains fluid and I expect that markets will experience more volatility than we have seen so far all week.
The upside target remains 26704, which is the initial resistance to the daily candle. Above this level, 26951 becomes the next upside target (Sep 30 high).
To the downside, support is provided at 26159 by the lower wedge border. This is also the site of the 26 Aug 2018 and February 24, 2019 highs, acting in role reversal from previous resistance to present support. A break of this area opens the door for price to aim for 25399.