US stocks manage to climb back into the green: DJIA outperforms

The Dow Jones Industrial Average took the spotlight and ended higher around 170 points or 0.7%.
The S&P 500 closed higher by 0.2%.
Nasdaq Composite managed to scrimp just less than a 0.1% gain.

Ross J Burland FXStreet

US stocks were on the up into the close on Wednesday, having spent the major part of the day on the defensive on mixed feelings relating to geopolitical tensions and the global growth outlook. However, investor's risk apatite started to build due to solid corporate earnings with ongoing uncertainty surrounding the U.S.-China trade talks. IBM Corp. and Procter & Gamble Co. were stealing the limelight due to their solid earing reports.

In other news, and in respect to the US government shutdown, House Speaker Nancy Pelosi said she wouldn't authorize President Donald Trump to give his State of the Union speech in the chamber.

Also, investors are keeping a close eye on developments over Venezuela political turmoil. U.S. President Donald Trump said the U.S. had officially recognized Juan Guaido, the new head of Venezuela’s National Assembly, as interim president after the assembly declared Maduro illegitimate. Oil prices are going to be a major theme.

DJIA levels

Support levels: 24215 24020 23797
Resistance levels: 24670 24857 25052

From a technical standpoint for the DJIA, the 50% Fibo is a strong confluence support level and target of which the index has yet to break still. However, we have a hanging man on the weekly sticks and a doji on the daily sticks, followed by a bearish close the prior day and a neutral close on Wednesday lacking upside conviction. A continuation of the downside in the index will target 9th Jan swing high at 24025.

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.

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