US stocks closed lower

FXStreet (Córdoba) - US indexes closed with mild losses Wednesday, with the Dow Jones Industrial Average down 50 points or 0.31% at 16,279.89. The index started the day with a positive tone, but edged lower on commodities prices decline. Also, a tepid local manufacturing report as the Markit PMI held unchanged from August at a 22-month low, hurt investors' confidence in the local recovery.

DJIA technical perspective

“Technically, the daily chart shows that the index set a lower low and a lower high daily basis, with the upside capped by its 20 SMA and the 50% retracement of the latest weekly decline, both around the 16,380 level. In the same chart and due to choppy intraday trading, the technical indicators lack directional strength and are flat around their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the downside is still favored with the price below its 20 SMA and the Momentum indicator heading south below its 100 level”.

Support levels: 16,214 16,100 15,978. Resistance levels: 16,380 16,459 16,557.