Dow Jones jumps 0.55% in the opening at 29196 after better than expected readings on the Philly Fed and retail sales. Investors cheered the signing of phase one trade deal. China agreed to buy $200 billion of US products and services as well to impose tighter rules on intellectual property. President Donald Trump said that the existing tariffs on Chinese imports would remain until after the US election.
InvestingCube's S&R Levels
Not in Sell Zone
US December advance retail sales came in at +0.3% in line with expectations. The retail Sales ex Autos came in at 0.7%, topping forecasts of 0.5% in December. The United States Initial Jobless Claims registered in at 204,000 below estimates of 216,000 on January 10. The most stronger number came from Philadelphia Fed Manufacturing Survey with a reading of 17 well above the forecasts of 3.8 in January.
Nasdaq started the session 0.73% higher at 9,326, while the S&P 500 is 0.56% higher at 3,307. The volatility or VIX index hits 11.78 the lowest level since December.
Dow Jones continue higher for the fourth consecutive trading day as the rally refuelled by strong corporate earnings. Risk-on mood and excess liquidity are the main drivers of the stock rally as the geopolitical tensions ease.
The Dow Jones Industrial Average Intraday resistance stands at 29206. If Dow Jones Index breaks above that level today the next level to watch is at 29,500 the psychological resistance.
On the downside, the initial support level for the Dow Jones index will be met at 29,132 the daily low. If the index breaks below the next support zone stand at 28903 the low from January 15th. What might cancel the bullish momentum is if the index breaks below the 50-day moving average at 28,200.