- Summary:
- Dow Jones futures trading lower ahead of US market open, despite unconfirmed reports that US-China deal will be signed on November 17.
Dow Jones futures are lower today after a failed attempt at pushing past the all-time highs. Yesterday, the Dow Jones futures asset was able to reach an intraday high that breached the 27,000 mark. After hitting 27,168, it has pulled back to 27,056.
Earlier in the day, a report from Chinese news outlet South China Morning Post stated that US President Donald Trump and Chinese President Xi Jinping will meet at the APEC summit in Chile on November 17th and will quite possibly sign off on an interim trade deal. The news outlet quoted an unnamed Chinese source in the story, which is yet to be independently verified.
The Dow did not react to this story and now looks towards the open of the US markets in less than half an hour for greater direction on the day.
Technical Outlook for the Dow
The Dow Jones monthly chart reveals that the latest high of the monthly candle represents the 3rd successive attempt to touch the all-time high which has fallen short. The price highs and lows from 2017 till date can be closed off with a rising wedge pattern. This pattern, coupled with successively lower highs in recent times, may be an indication that long-term, the Dow may be close to an end of the multi-year uptrend.
In the medium and near-term, price action still has some room to attempt another push to the upside. This may occur if more positive earnings results are achieved today.
The immediate intraday resistance lies at 27079 (central pivot). A break above this line targets the next resistance levels seen at 27179 (September 20 and October 28 highs). Above this level, 27265 (July 30 and September 19 highs) become the next possible target. Price must maintain a sustained close above 27,404 (July 15 high) to become the new all-time high level.
Failure to break the central pivot brings 26990 (S1 pivot) and 26890 (September 18 low and S2 pivot) into focus as the next support targets.