Wall Street extends upside on political optimism, DJIA heading to 76.4% Fibo at 25668
- The Dow Jones Industrial Average DJIA made a 200 point gain on the session at its highest levels, added 117.51 points by the close, or 0.5%, to 25,543.27.
- The S&P 500 index climbed 8.30 points, or 0.3%, to 2,753.03.
- The Nasdaq Composite COMP added 5.76 points to 7,420.38 but failed to hold above the key 7,431.50 bullish market territory.
U.S. stocks closed higher again on Wednesday, following news that President Donald Trump might allow the China trade-deal deadline “slide” if the two sides continue to make enough progress. A 90-day trade truce ends on March 1st where tariffs on some $200 billion in goods would otherwise be kicking in, raised to 10% from 25%. However, the market is hopeful that Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer who are on their way to Beijing to meet with, Chinese Vice Premier Liu He, who is the top economic adviser to President Xi Jinping, will be successful. Meanwhile, in further politics, fears of a second government shutdown was unlikely, although there are some concerns that Trump is not entirely satisfied with the tentative agreement agreed by Democratic and Republican lawmakers at the start of this week, allowing for 55 miles of new border fencing
DJIA levels
The technical indicators in the DJIA remain positive with the index moving higher above the 200- D SMA and the 61.8% Fibo level, coming in a whisker of the 76.4% Fibo at 25668. The next key upside target is R2 at 25733 ahead of R3 at 26006. However, a break of the moving averages on the downside opens the 50% Fibo downside target located at 24215 meeting the 21st Jan fractal lows of 24243.
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.
