FXStreet (Córdoba) – US stocks rebounded on Wednesday after sharp losses the previous session as concerns about China eased and following the ADP employment report which showed improvement in the job sector ahead of Friday’s nonfarm payrolls.
The Dow Jones Industrial Average rose 293.10 points or 1.82% to close at 16,351. The S&P 500 gained 35.01 points, or 1.83%, to 1,948. The Nasdaq climbed 113.87 or 2.46% to 4,749.
ADP report slightly softer than expected
US private sector added 190K new jobs in August, according to Automatic Data Processing. Employment gain was expected to come in at 201K after a 177K increase in July (revised down from 185K).
Traders use ADP’s data to get a proxy for the nonfarm payrolls report, which will be released Friday.
DJIA technical view
“The intraday recovery was enough to reverse the technical bearish tone of the index, as the daily chart shows that the 20 SMA maintains its strong bearish slope well above the current level, whilst the technical indicators are once again bouncing from oversold levels, but below previous highs and well into the red”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is currently pressuring a bearish 20 SMA, whilst the technical indicators aim higher, but still below their mid-lines, pointing for some further intraday gains on an advance above 16,446, a strong static resistance level”.
Support levels: 16,310 16,204 16,072. Resistance levels: 16,391 16,446 16,526.
(Market News Provided by FXstreet)