Wall Street closes in red dragged by financials and technology

It didn't take long for major equity indexes to slip into the negative territory and close lower following a positive start to the day.

Comments from the next possible chair of the House banking committee Maxine Waters, who said banking regulations would not be eased any further on her watch, weighed on the S&P 500 Financials Index and forced it to close 1.38% lower. Moreover, the financial-heavy Dow Jones Industrial Average erased 203.99 points, or 0.81%, to close at 25,082.50 points. 

In the meantime, concerns over iPhone sales continued to push investors away from Apple and the company's shares lost 2.82% on the day to drag the S&P 500 Technology Index 1.3% lower on the day. Finally, the trade-sensitive S&P 500 Industrials Index lost 0.37% after the EU trade commissioner Cecilia Malmstrom said that the EU had the retaliation tariff list ready if the U.S. were to impose autos tariffs on the EU.

The S&P 500 lost 20.36 points, or 0.75%, to 2,701.82 and the Nasdaq Composite fell 64.48 points, or 0.9%, to 7,136.39 on Wednesday.

DJIA technical outlook by FXStreet Chief Analyst Valeria Bednarik

The Dow closed at its lower since late October, and below all of its moving averages in the daily chart that anyway lack directional strength. The Momentum indicator in the mentioned chart remains flat above its 100 level, but the RSI indicator head strongly south below its mid-line now around 41.

In the shorter term, and according to the 4 hours chart,  the risk is also skewed to the downside, with the 20 SMA gaining downward traction well above the current level, the index developing below all of its moving averages, and technical indicators well into negative ground. The RSI in this last time-frame accelerates south by the end of the day, currently at 27, anticipating some additional declines ahead.

Support levels: 25,024 - 24,973 - 24,932.

Resistance levels:  25,091 - 25,147 - 25,190.