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15 Sep 2015
US stocks extend gains into third session, Fed eyed
FXStreet (Córdoba) - US stocks rose on Tuesday, led by a rebound in industrials, with the three main indexes posting its third gain in a row.
The Dow Jones Industrial Average rose 228.89 points, or 1.40%, to 16,599.85. The S&P 500 climbed 25.05 points, or 1.28% to 1,978.09. The Nasdaq Composite gained 54.76 points, or 1.14% at 4,860.52.
Markets remain in wait and see mode with investors mostly sidelined or adjusting positions ahead of the Federal Reserve meeting on Thursday when it will be finally unveiled the bank’s decision to raise or not to raise federal funds rates.
DJIA technical perspective
“The daily chart shows that the index reached a critical level, the 61.8% retracement of its latest downward run, around 16,660, a level that contained the upside ever since breaking below it on August 21st. The technical picture suggest the index may finally break above it, as in the daily chart, the downside was contained by a now flat 20 SMA, whilst the technical indicators aim higher above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have lost upward strength and turned slightly lower right after the close, but the index has advanced above its 20 SMA, currently a few points above the 50% retracement of the same rally at 16,380. As long as this last holds, the downside will remain limited, with some steady advance beyond the mentioned 16,660 Fibonacci level favoring a steadier recovery towards the 17,000 region”.
Support levels: 16,539 16,399 16,320. Resistance levels: 16,660 16,774 16,903.
The Dow Jones Industrial Average rose 228.89 points, or 1.40%, to 16,599.85. The S&P 500 climbed 25.05 points, or 1.28% to 1,978.09. The Nasdaq Composite gained 54.76 points, or 1.14% at 4,860.52.
Markets remain in wait and see mode with investors mostly sidelined or adjusting positions ahead of the Federal Reserve meeting on Thursday when it will be finally unveiled the bank’s decision to raise or not to raise federal funds rates.
DJIA technical perspective
“The daily chart shows that the index reached a critical level, the 61.8% retracement of its latest downward run, around 16,660, a level that contained the upside ever since breaking below it on August 21st. The technical picture suggest the index may finally break above it, as in the daily chart, the downside was contained by a now flat 20 SMA, whilst the technical indicators aim higher above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have lost upward strength and turned slightly lower right after the close, but the index has advanced above its 20 SMA, currently a few points above the 50% retracement of the same rally at 16,380. As long as this last holds, the downside will remain limited, with some steady advance beyond the mentioned 16,660 Fibonacci level favoring a steadier recovery towards the 17,000 region”.
Support levels: 16,539 16,399 16,320. Resistance levels: 16,660 16,774 16,903.