FXStreet (Córdoba) – Wall Street had a terrible day, with the DJIA dropping as much as 565 points mid-American afternoon, following WTI prices that briefly breached the $27.00 mark. Stocks however, staged a sharp rebound in the last hours of trading, and the Dow closed “just” 249 points lower at 15,766.74.
The Nasdaq erased almost all its daily losses, ending at 4,471.69, down by 5 points, while the S&P ended the day at 1,859.33, down 1.17% after being over 3% lower at one point.
US crude prices had their biggest one-day percentage loss since September, leading the way across financial markets, but a late recovery in the commodity helped US indexes rebound.
DJIA technical view
“Trading below the 16,000 level, the DJIA daily chart shows that the index fell briefly below the 23.6% retracement of the 2009/2015 rally at 15,557, a major support given that once broken, the market may well enter in a panic selling stage”, said Valeria Bednarik, chief analyst at FXStreet. “In the same chart, the bearish bias prevails, with the RSI indicator heading lower around 28, while in the 4 hours chart, the technical indicators head higher in bearish territory, in line with the latest bounce, but far from suggesting the rally can extend”.
Support levels: 15,747 15,646 15,557. Resistance levels:15,900 15,989 16,090.
(Market News Provided by FXstreet)