DJIA ends in triple digit losses and 38.2% Fibo at 24500 is on the horizon
- The Dow Jones Industrial Average dropped 200.23 points, or 0.8%, to 25,473.23.
- S&P 500 index fell 22.52 points, or 0.8%, to 2,748.93.
- The Nasdaq Composite Index also lost 84.46 points, or 1.1%, to 7,421.46.
Stocks closed down in the 4th consecutive session in a risk-off environment on global growth concerns. The ECB casts a dark shadow over markets and investors were acting accordingly, starved of optimistic trade headlines.
"If the United States presses too hard, Beijing is also likely to take the position that no deal is better than a deal that could limit China’s economic development. And it is preparing for that possibility," NYT reported.
"ECB extended their forward guidance on keeping interest rates steady from “at least” through the end of summer 2019, to “at least” end 2019 and outlined renewed liquidity provisions earlier than anticipated via Targeted Longer Term Refinancing Operations (TLTROs). The trigger was the sharpness of the downward revisions to staff forecasts which lowered Eurozone growth (to 1.1% in 2019) and inflation (both core and headline 1.2% in 2019) through their forecast period," analysts at Westpac explained.
DJIA levels
The DJIA's 78.6% Fibo of the Oct swing highs to Dec rout lows with the confluence of the rising trend-line support gave way and a sell-off below the 21-D SMA with a key downside target at the 61.8% Fibo level positioned beneath the 25000 psychological level at 24847 is back on the cards. Below it, the next target on the horizon will be the 38.2% Fibo at 24500 and then the 50% Fibo just below the psychological 24000 level.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
