DJIA stuck at key resistance and confluence level, but enjoys best January since 1989

• Wall Street was a mixed end tot he week and month, with the S&P 500 and  Nasdaq closing in the green but the DJIA as the laggard falling behind the curve.
• The S&P 500 rose 0.9% to end around 2,705.
• The Dow Jones Industrial Average fell 12 points, or less than 0.1%, to 25,002.
• The Nasdaq Composite advanced 1.4% to end near 7,282.

U.S. stocks ended a touch  higher on Thursday, following the Fed turning neutral and confirming market’s  suspicions. Data will be the key driver from here as well as progress between the US and Chinese trade talks.  

While the DJIA ending slightly lower on the session, for the month, the index enjoyed its best January since 1989, while the S&P posted its best January since 1987 as investors get set for a retrun  of the reflation trade and easier money.  Additionally, the sound bites from Sino/US trade talks were flowing and positive, stoking investor risk appetite to the upside. Sweeping across the benchmarks, shares of Facebook Inc. stood out, surging 11% after the social media firm reported record profit numbers. However, the top performer in the DJIA was Pfizer, higher by 2.98%. Caterpillar followed at 2.34% higher and Procter & Gamble added 2.06%. Dowpupont Inc dropped over 9% and was followed by Goldman Sachs down by 2.21%.

DJIA levels

• Support levels: 24902 24697 24169
• Resistance levels: 25225 25431 25754

The index is stuck around the 61.8% Fibo retracement of the Oct 2018 decline and the technical death cross, (50 crossed below the 200 D SMA mid-Dec) lean bearishly on the index. A significant correction in the index will now target 9th Jan swing high at 24025. Bulls will now target a break and hold above the 61.8% fibo and the confluence of the 100/200-D SMA for a run towards R3 located at 25754.