- Wall Street ended at better levels than the Monday session lows the Dow had lost more than 500 points, while the S&P had shed 50 points and the Nasdaq had been down 81 points at one stage.
- The DJIA went on to bring a modest gain of 33 points, or 0.1%, to close around 24,422 while the S&P 500 SPX, +0.18% rose by 0.2% to end around 2,637, based on preliminary numbers while the NASDAQ Composite COMP, climbed 0.7% to around 7,021.
The global market sentiment is fragile on growth concerns relating to global relationships from Brexit to the Sino/US dispute that was recently antagonised by Chain's warnings of 'severe consequences' over Huawei chief's arrest if the country’s authorities did not immediately release her.
Meng Wanzhou was detained on 1 December and faces extradition to the United States to face fraud charges - (Prosecutors have alleged that she covered up her company’s links to a firm that violated sanctions by attempting to sell equipment to Iran). U.S. Trade Representative Robert Lighthizer told CBS’ Face the Nation on Sunday that he considers the 90-day moratorium from new tariffs granted to the Chinese a “hard deadline,” and that the administration is not considering delaying an escalation of the trade conflict if the two sides can’t agree to an armistice by March 1. Meanwhile, the weekend's data was also showing a sharp slowdown in Chinese export growth reinforced fears that the best of the current bull market is behind us.
DJIA levels
- Support levels: 24087 23778 23247
- Resistance levels: 24591 24900 25404
While the DJIA remains submerged below both the 38.2% and 23.6% Fibo of the recent rout, bears can stay on top while daily RSI remains negative and eyes stay S2 at 23778. However, the long pin bar on the daily sticks below S1 should be a warning to bulls.
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.