- The S&P 500 lost a point to 2,791.
- Dow Jones Industrial Average added just 11 points to 25,830.
- The Nasdaq Composite COMP also added 10 points, or 0.1%, to end at 7,587.
Traders on Wall Street were indecisive again on Tuesday, with prices of stocks moving in and out of positive territory following the Chinese announcements. China lowered its economic growth target for 2019from 6.5% to between 6% and 6.5%, acknowledging the foreseen slowdown. However, Premier Li Keqiang outlined plans to support the economy, with tax cuts and various other stimulus measures such as an increase in deficit spending, lowering fees for businesses, and a 30% boost in bank lending to small and private companies.
On the data front, a strong came in the US ISM non-manufacturing index jumping from 56.7 in Jan to 59.7 in Feb (vs 57.4 expected), making for a three-month high and close to the 13-year high of 60.8 seen in Sep. “The result was led by 13-year highs in new orders, although employment eased. Further friendly trade tariff talk and reopening of the US government were likely catalysts. The long-delayed Dec new home sales data also handily beat expectations, with lower mortgage rates likely a factor,” analysts at Westpac explained.
The daily outlook on the DJIA is still bullish with the Ichimoku Cloud’s conditions aligned bullishly. The price above the 21-D SMA and establishing despite being below the ascending trendline support that was broken at the end of last month. However, the DJIA’s 78.6% Fibo of the Oct swing highs to Dec rout lows with the confluence of the rising trend-line support could come under pressure and give way to a sell-off below the 21-D SMA with a key downside target at the 61.8% Fibo level positioned beneath the 25000 psychological level at 24847. Should bears crack that nut, the next target on the horizon will be the 38.2% Fibo at 24500 and then the 50% Fibo just below the psychological 24000 level.