US stocks end higher helped by rebound in oil

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 14, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - US indexes managed to close the day with gains after trading in the red for most of it, as oil prices reversed their intraday losses and snapped a six-day losing streak.

    The Dow Jones Industrial Average advanced 103 points and closed the day at 17,368.50, while the S&P briefly fell below the 2,000 mark before closing the day at 2,02194. The Nasdaq also advanced, adding 18 points this Monday.

    Nevertheless, trading has been volatile across most of the financial markets, as investors are waiting for the outcome of the two-day Federal Reserve meeting, to be revealed next Wednesday. With roughly 80% of the market pricing in a rate hike, stocks will likely remain under pressure, albeit markets' reaction to the fact is not easy to predict.

    DJIA technical perspective

    “Technically, the daily chart shows that the latest bounce was not enough to send the index back above its 200 DMA, whilst the technical indicators have lost their bearish strength but remain below their mid-lines, in line with markets' negative sentiment”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical outlook is also bearish, as the 20 SMA heads lower above the current level, and the Momentum indicator heads south below the 100 level, while the RSI indicator aims to correct higher, but remains in negative territory, now around 43”.

    Support levels: 17,288 17,219 17,238. Resistance levels: 17,397 17,456 17,521.

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