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.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.