A Politico news report from Tuesday reported that US President Donald Trump and key lawmakers found common ground on approaching tax reform measures. The prospect of tax reform was one of the main market catalysts that drove momentum higher after Trump's victory in November. Equity markets also found support from news that Norway’s $1 trillion sovereign wealth fund was increasing its exposure to stocks.
Boeing was among the biggest gainers, rallying 1.70% after the aerospace company received a government contract for replacing the aging Minuteman III intercontinental ballistic missile system. Dow futures have since rebounded from the lows hit in early Wednesday trade. The short-term trend remains upwards, with 21900 representing immediate upside resistance. A break above yesterday’s peak could take the index futures to levels closer to 21970. However, what should be worrying from a trading standpoint is that volumes remain below average, a development traditionally associated with reversals.
Dow Logs Best Day Since April
Daily Analysis - 23/08/2017