FXStreet (Córdoba) – Wall Street indexes closed in the red this Monday, with losses led by energy and raw material producers. The main indexes however, held within quite limited ranges as volume remains at its minimum expression in this winter holidays.
The Dow Jones Industrial Average fell 23.7 points, or 0.14%, to 17,528. The S&P 500 lost 4.48 points, or 0.22%, to 2,056. The Nasdaq Composite shed 7.51 points lower, or 0.15%, at 5,040.
DJIA technical view
“Trading a handful of points above the 17,500 level, the daily chart for the DJIA shows that the index erased most of its intraday losses, and trades above its moving averages, although the technical indicators head nowhere around their mid-lines, reflecting the ongoing lack of directional strength”, said Valeria Bednarik, chief analyst at FXStreet. “Also, the upside remained capped by the 61.8% retracement of the latest bearish decline around 17,560, while the 4 hours chart shows that the index is struggling around a bullish 20 SMA, and that the technical indicators have corrected all of the extreme overbought conditions reached last week and have now turned horizontal in neutral territory”.
“Given that the index has recovered after falling briefly below the 50% retracement of the same decline, the overall stance for these days is bullish, although some follow through beyond the mentioned resistance is required to confirm additional gains”, Bednarik added.
Support levels: 17,494 17,445 17,382. Resistance levels: 17,560 17,602 17,664.
(Market News Provided by FXstreet)