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US stocks close higher after FOMC minutes

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 17, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Wall Street rallied on Wednesday, extending its gains after the minutes of the latest Fed meeting showed that policymakers are concerned over economic growth.

    Most Fed officials agreed that further information is needed before deciding on a rate hike during 2016, in line with market's expectations. The minutes did not reveal anything new, but supported investors' recent speculation that the Central Bank will remain on hold for now.

    US indexes rose for a third straight session, with the Dow up 257 points, or 1.59% to close at 16,453.83, the Nasdaq edging 2.21% higher to 4,534.07 and the S&P adding 31 points, or 1.65%, to 1,926.82.

    DJIA technical view


    “The DJIA technical picture is quite constructive, as the daily chart shows that the index is close to complete a double floor figure, which’s neckline stands at 16,510, a critical resistance for this Thursday. In the same chart, the benchmark has accelerated above a now slightly bullish 20 SMA, whilst the technical indicators have crossed their mid-lines towards the upside, although showing limited upward strength at the time being”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is firm above its moving averages, with the 20 SMA heading sharply higher after crossing above the 100 SMA, and the technical indicators consolidating near overbought levels, all of which supports a continued advance, particularly if market's positive mood extends during the Asian session”.

    Support levels: 16,389 16,277 16,202. Resistance levels: 16,510 16,590 16,683.
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