Wall Street is posting moderate gains from market open on the back of better than expected July retail sales data as well as a better than expected number from the Philly Fed Manufacturing Index. Strong earnings from Walmart also helped to please investors, and the Dow Jones Average and S&500 indices are presently up by about 0.1%.
However, gains have been limited on the back of the latest comments from China which seem to have caused a return of the risk-off market sentiment. The Nasdaq Composite index is posting small losses presently as a result, as Apple and other companies that may be impacted by the latest twist to the US-China trade imbroglio are posting losses as well. Earlier today, China reiterated its willingness to apply countermeasures to a new round of 10% tariffs on Chinese goods, saying that the US had reneged on the agreement reached in Osaka, Japan by the two sides.
Technical Setup for US30 Index
Despite opening the day higher, the Dow Jones index is still trading lower for the week. Presently, today’s higher open has taken the Dow off the support level at the 38.2% Fibonacci retracement level, traced from the swing low of December 23, 2018 to the swing high of July 14, 2019.
A break of 25,195 will open the door to the 24,558 and 24,117 price levels. If the present support at 25,195 holds, then we can expect a test of the 26,050 price mark.Don’t miss a beat! Follow us on Telegram and Twitter.
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