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US stocks end higher after Fed statement

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - US stocks ended higher on Wednesday after the Fed decided to leave rates unchanged, it kept a 2015 rate hike on the table.

    Fed decided to stand pat on rates but kept a December rate hike on the table despite acknowledging the “pace of job gains slowed” and inflation remains below the 2% target. Investors were probably expecting a more dovish tone from the Fed following a series of disappointing economic indicators over the last weeks.

    Stocks reacted negatively to the announcement and fell to session lows before bouncing to close into the green.

    The Dow Jones Industrial Average advanced 198.09 points, or 1.13%, to 17,779.52. The S&P 500 rose 24.46 points, or 1.18%, to 2,090.35. The Nasdaq added 65.55 points, or 1.3%, to 5,095.69.

    DJIA technical outlook

    “The DJIA rallied to a fresh 3-month high, maintaining its latest bullish tone, and with the daily chart supporting further gains ahead, given that the index advanced further above its 200 DMA whilst the technical indicators resumed their advances, despite being in overbought levels”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the technical indicators have lost their upward strength and are currently turning south, but are still well above their mid-lines, whilst the index held above its 20 SMA, after a short lived knee-jerk right after the FOMC's announcement, in line with the longer term outlook”.

    Support levels: 17,682 17,620 17,544. Resistance levels: 17,830 17,895 17,950.
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