Wall Street pops but caution remains and DJIA is directionless


  • The DJIA, added approximately 116 points or 0.5% to 25,648.
  • S&P 500, added 0.6% or around 17 points higher to 2,851.
  • Nasdaq Composite index climbed 1.1%, or 88 points, to 7,822.

Wall Street was in recovery again from the sessions early doors losses following news that the Trump administration was taking steps to ratchet down trade tensions with the European Union, Canada and Mexico. The technical picture was subsequently left in no man's land as neither the bulls nor bears are taking one another on considering the fickle geopolitical environment which has been the driving force of late.

Signs of green shoots are coming out with respect to U.S. geopolitical stances on trade between Canada, Mexico and even China. There are plans for a U.S. delegation to head to Beijing next week to continue talks with China over trade and, in the same vein, there were reports that Mnuchinhad said that the U.S. is close to deal with Mexico and Canada on tariffs and is trying to remove tariffs as part of the MCNA deal.

"The uncertainty created by Trump's tariffs and trade policy have had a negative effect on trade and manufacturing globally which continues to show up in the US data. China’s data may trigger market concerns about the sustainability of China’s recovery in late Q1. We expect China to roll out more supportive measures to shore up sentiment and maintain economic resilience,"

analysts at ANZ Bank explained.

Subsequently, the Dow Jones Industrial Average DJIA, added approximately 116 points or 0.5% to 25,648. Elsewhere, the S&P 500, added 0.6% or around 17 points higher to 2,851, while, while the Nasdaq Composite index climbed 1.1%, or 88 points, to 7,822.

DJIA levels

Technically, the bulls were targeting the 29. March lows at 25771, meeting the 61.8% Fibo. However 25370 was pierced, but all was not lost and the bulls can still target a run towards the topside of the channel and said 61.8% Fibo target ahead of 26000. Hourly MACD and stochastics lean bearish and a break to  25200s guard a run to 24500s and then 50% of the upside run made at the end of Dec at 24150. However, daily and 4HR indicators favour the upside, so a be expected and recent lows should hold. If 25500 holds, 50% mean reversion of the day’s bullish candlestick and close, then that would be highly bullish and set the stage for a run higher.


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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD retreats, holds on to modest intraday gains

Having spent the day within familiar levels, the EUR/USD pair is once again retreating from the 1.1070/80 resistance area. Dollar in better shape against most major rivals after post-Fed’s correction.


GBP/USD above 1.2500 as Juncker says there could be a deal by October 31

EU’s Juncker said that if the objectives of the backstop are met through alternative arrangements, the backstop won´t be needed, adding that there could be a deal by the October deadline. GBP/USD hits fresh 7-week highs in the 1.2530 region.


USD/JPY stays in negative territory near 108 despite rising US stocks

The USD/JPY pair rose to its highest level since early August at 108.48 during the American trading hours on Wednesday after the Federal Reserve refrained from giving any hints regarding the next policy move despite announcing a 25 basis points rate cut.


Gold consolidating at technical levels awaiting next catalyst

Precious metals were higher on Thursday. Gold prices climbed from $1,489.13 to $1,504.60. The gold ratio travelled between 83.87 and 84.66 with a bullish bias as the yellow metal surges on. 

Gold News

The Federal Reserve Keeps its Options Open

The Federal Reserve’s two rate cuts in as many months have satisfied market expectations for action and will give the governors time to determine if a full reduction cycle is warranted.

Read more