Dow stands at the back foot on Friday, as Asian and European stocks were lower and hawkish Fed surprised investors, dampening demand.
Thursday’s trading ended in Doji, which signaled that steep ascend in past two weeks is running out of steam, with fresh easing on Friday, forming reversal pattern on daily chart. Close in red on Friday would generate initial reversal signal which requires confirmation on close below pivotal supports at 25958/00 (daily cloud base/55SMA).
The notion is supported by reversing slow stochastic in deep overbought territory and sideways-moving momentum.
Strong rally in past two weeks requires correction, but overall structure remains bullish and extended pullback should find support at 25430 zone (rising 10SMA/Fibo 38.2% of 24085/26267 rally) to keep bulls in play.
Res: 26267; 26283; 26509; 26550
Sup: 26035; 25958; 25900; 25639
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