US stocks fall sharply after ECB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Wall Street sunk this Thursday on prospects of less easy money in Europe according to the latest ECB economic policy decision.

    The Dow Jones Industrial Average shed 252 points and closed the day at 17,477.67, while the Nasdaq lost 1.67% and the S&P edged 1.44% lower.

    The triple digit decline in the DJIA comes ahead of the release of the November US employment report, which may help determine if the US Federal Reserve will raise its rates in its upcoming meeting, despite the limited economic growth.

    DJIA technical view

    “Technically, the index is poised to extend its decline as in the daily chart, the technical indicators are crossing their mid-lines towards the downside, whilst the index has fallen well below its 20 DMA, and is now struggling around the 200 DMA at 17,494”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index has broken below its moving averages, whilst the Momentum indicator maintains a bearish slope below its 100 level and the RSI indicator hovers around 30, maintaining the risk towards the downside, and supporting additional declines on a break below 17,421, the daily low and the immediate support”.

    Support levels: 17,421 17,365 17,289. Resistance levels: 17,521 17,610 17,690.
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