Wall Street indices started higher today with the Dow Jones adding 0.25% at 26,958.81. The Nasdaq currently is trading 0.04% higher at 8,032, while the S&P 500 trading 0.13% higher at 2,981.85 as investors await the developments in trade negotiations between China and US which are scheduled to start in early October, though political uncertainty in Washington still weighs on sentiment. On the data front the Core personal consumption expenditure (FED’s preferred measure of inflation) inflation, advanced 0.1% month-over-month, while the annual rate rose from 1.7% to 1.8%, but lags the Fed’s 2% goal.
The CBOE Volatility Index or fear index is giving up2.36% at 15.69 just to confirm the positive market mood.
Dow Jones recovers yesterdays losses as it comfortably holds above the 200-day moving average. On the upside immediate resistance is at 26,991 today’s high and then at 27,273 the high from July 31st. On the downside, Dow Jones first support stands at 26,947 today’s low and then at 26,591 the 200-day moving average, a break below might accelerate the move to the next support level at 26,369 and the 100-day moving average. The technical outlook for Dow Jones is bullish, and only a break below 26,000 will question the positive momentum.
The European Indices trading lower today, the DAX 30 is 0.74 percent higher at 12,379 while CAC 40 in Paris trades 0.15 percent higher at 5,629. The FTSE 100 is 0.83 higher at 7,413.