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DJ 30 futures are currently trading at 26981-lower by 0.38% as compared to the previous close. The contract, however, closed in the positive territory in the last trading session.
In the Cash Markets, the DJIA added about 54 points at the time of writing. U.S. equities dropped to their lows of the day on Friday after news that China’s trade officials are cutting short their visit to the U.S.
The Montana Farm Bureau said earlier today that Chinese officials had canceled a visit to the US. Farms in Montana. Stocks of Apple hit their lows of the day, falling 1.25%.
Meanwhile, the U.S. Trade Representative’s office said on Thursday that more China’s goods would be excluded from existing tariffs, including certain auto parts, dog collars, Christmas tree lights and some printed circuit used in computers.
Deputy trade negotiators from the U.S. and China resumed face-to-face talks on Thursday at the U.S. Trade Representative’s office near the white house. The trade talks on Thursday and Friday were aimed at laying the groundwork for high-level talks in the next month.
In recent weeks, economic stimulus around the world has helped to reduce fears about slowing global economic growth. The U.S. Federal Reserve slashed the benchmark short-term fed funds rate by 25 basis points to the target range of 1.75%-2.00% on Wednesday. It was the second Fed rate cut of 2019.
The Chinese central bank cut its 1-year loan prime rate by 5 basis points to 4.2% on Friday. It was the second month in a row that the central bank cut its new one-year benchmark lending rate. The People’s Bank of China, however, kept its 5-year loan prime rate unchanged at 4.85%.
Stocks will also be affected today by quadruple witching, the simultaneous expiration of stock-index futures and stock-index options, as well as individual stock futures and options.
Index component Merck & Co added 1.49% as the company’s drugs Delstrigo and Pifeltro receive FDA approval for use in certain adult patients.
On the other hand, stocks of Boeing dropped 1.35% as the FAA chief said a series of steps needed to be completed before the 737 MAX could return to service.
The 30-stock index entered into Friday’s session with just 1.1% away from its all-time high.
On the technical front, the RSI is currently at 57.94% and suggests that the market can move in the downward direction. The current price is below the MA5. The %K has crossed the %D from above to the downside at around 97% and suggests that the market can move in the downward direction.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 27000, Take Profit At 26900 Stop Loss At 27050