US stocks retreat ahead of FOMC decision

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 27, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - US indexes closed slightly lower, with the DJIA down by 41 points and ending the day at 17,581.43. The Nasdaq lost 4 points, while the S&P closed 0.26% lower.

    Lower oil prices and disappointing earnings reports dragged Wall Street lower, with investors already adopting a cautious mode ahead of the FED's meeting outcome.

    Car maker Ford plunged over 4% after reporting quarterly earnings below market's forecast, attributing the slide to higher taxes. Also, weaker-than-expected US data weighed on investors sentiment, which stayed sidelined, ahead of any rate move clue. On the other hand, Apple Inc reported stronger-than-expected earnings after the market closed.

    DJIA technical view

    “The Dow daily chart shows that, despite setting a lower low for the week, the index remains within its latest range, near the fresh 2-month high set late last week. Also, the index stands well above its 200 DMA, whilst the technical indicators have turned flat well above their mid-lines, maintain the risk towards the upside”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the upward potential has lost part of its steam, as the Momentum indicator heads lower below its 100 level, albeit the RSI indicator maintains a bullish slope around 66 and the index struggles around a bullish 20 SMA. The index needs to break above 17,682 the mentioned high, to be able to extend its rally, with buyers still seeing on dips towards the 17,550/70 region”.

    Support levels: 17,570 17,506 17,391. Resistance levels: 17,682 17,749 17,830.
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