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  • Dow Jones Industrial Average (DJIA), added 11.06 points, or less than 0.1%, to end at 26,554.39.
  • S&P 500 index climbed 3.15 points, or 0.1%, to 2,943.03.
  • The Nasdaq Composite Index added 15.46 points to 8,161.85, a gain of 0.2%.

Wall Street was buzzing on Monday as investors get set for more earnings this week and ahead of the Fed and a possible breakthrough in U.S. Chinese trade talks that will commence again in Washington this week. The indexes started out positively following China’s positive data weekend news and a solid European market performance despite weak data in mainland EZ.

The Dow Jones Industrial Average (DJIA), added 11.06 points, or less than 0.1%, to end at 26,554.39, while the S&P 500 index climbed 3.15 points, or 0.1%, to 2,943.03, surpassing an intraday record of 2,940.91. The Nasdaq Composite Index added 15.46 points to 8,161.85, a gain of 0.2%. For the Dow component, Boeing Co. BA, -0.28%  was in focus, down 0.5% on Monday  amid worries about a heightened 737 Max backlash after news over the weekend that it left one of its main customers and a storied 737 backer in the dark about a safety feature.

Awaiting the Fed

Analysts at ANZ Bank explained that  the FOMC committee will this week have to address its current characterisation of headline growth, which has not in fact slowed in recent months as the March 20 statement observed:

“It has accelerated – although private consumption growth and business fixed investment did cool. Irrespective, we expect no change in the FOMC’s interest rates guidance. Inflation is below target (March core PCE 1.6% y/y) and despite still-strong headline growth and robust momentum in the labour market, a sustained acceleration in core inflation remains elusive. That is contributing to low inflation expectations. That is not just an issue for the FOMC.”

DJIA levels

Technically, bulls are perking up but the moves lack conviction and the index is stuck around the pivot and directionless. Bears need a break below the 20-D SMA, and then 26000 opening risk towards 25700s.  A subsequent break of the 50-D SMA just below 26000 opens risk to the 23.6% Fibo retracement of the late Dec rally at 25500 guarding 25300 (200 D SMA). A break all the way down to the 24800 gap area would come into target ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24150.