FXStreet (Córdoba) – US stocks lost their shine this Tuesday, with the DJIA closing up 13 points at 16,790.19, but the Nasdaq and the S&P ending the day in the red.
Stocks seesawed during most of the day, as investors wait for the third quarter earnings reports, whilst taking profits out of the table after the latest rallies. Poor trade balance figures, also weighed over investors’ sentiment, as despite the reading was in line with an on-hold Fed, it also signals an increasing potential of an economic slowdown.
DJIA technical view
“The DJIA daily chart shows that the index remains well above a flat 20 SMA, while the technical indicators have lost their bullish strength and now consolidate well above their mid-lines, far from suggesting a downward move”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA has extended its advance above the 100 and 200 SMAs, and heads higher around 16,540, while the technical indicators have turned lower from near overbought levels. A decline below 16,676 the daily low, should open doors for a steadier decline, down to the mentioned 16,540 region”.
Support levels: 16,676 16,605 16,540. Resistance levels: 16,800 16,859 16,933.
(Market News Provided by FXstreet)