Wall Street edges higher on positive trade news from both sides of the Atlantic

• Dow Jones Industrial Average added 60.14 points, or 0.2%, to 26,091.95.
• S&P 500 index gained 3.44 points, or 0.1%, to 2,796.11.
• Nasdaq Composite Index put n 26.92 points, or 0.4%, to 7,554.46.

Following a risk-on session in both Asian and European markets overnight and as investors get set for Fed chairman Powell who delivers the first leg of his semi-annual testimony to Congress in the NY morning, to the Senate finance committee, US stocks were edging higher in a risk-on move following Trump’s postponement on tariffs and the likelihood of Brexit being delayed also.    

Looking forward, the prepared text from Powell was released on Friday. “The senators should be pleased with the FOMC’s steady rates message, though they will no doubt have plenty of questions aimed at scoring political points,” analysts at Westpac explained.  

DJIA levels

With the price now above the Dec swing high at 26070 along with indicators that remain bullish on the weekly time frame, although a little overcooked in the daily RSI and neutral turning bearish in MACD, there lies within a warning to the bulls of a potential near term consolidation. On a correction, a target down to 76.4% Fibo at 25668, if triggered, which could spark off profit-taking flurry back to the 50% mean reversion of the rally from the latest swing low to 25631. An additional bid and extension in the rally would likely look to 26277 as the Nov 7th swing highs ahead of a full recovery to 26951.