Wall Street's bullish streak gets capped, DJIA rested at R1


 

  • DJIA ended down around points, or less than 0.1%, at 26,048. 
  • S&P 500 index unchanged at 2,885.
  • Nasdaq Composite Index also ended flat at 7,822.

Wall Street saw choppy price action, largely staying within the prior dat's ranges with industrials and utilities shares weighing down the benchmarks. The Dow Jones Industrial Average, DJIA, ended down around points, or less than 0.1%, at 26,048, while the S&P 500 index was pretty much unchanged 2,885, and the Nasdaq Composite Index also ended flat at 7,822. The sentiment was knocked when news that China's foreign ministry said it would respond firmly if the U.S.

US data

"US headline producer prices came in as expected for May, at 0.1% m/m, down from 0.2% in April. Similarly, the core measure met expectations, rising by 0.2% m/m in May. On a yearly basis, the headline PPI figure missed expectations; coming in at 1.8% y/y (from 2.2% in April) but the yearly core figure came in as expected, at 2.3% y/y (from 2.4% in April). Producer prices excluding food, energy and trade services rose 0.4% in May (unchanged from the month prior) whilst rising 2.3% y/y (from 2.2% in April)," analysts at ANZ Bank explained. 

DJIA levels

The technical outlook remains the same given there was very little price action that verged from the prior day's range, with the index choppy and indecisive ahead of the US CPI the following day and retail sales thereafter. The DJIA remains above the key 61.8% Fibo retracement level of April to June swing highs and lows, scoring just shy of the 78.6% mark in the 26200s with a confluence of the 12th April gap the prior day. The index rested as R1 into the close. On the flipside, the 20-D EMA is located just below the 50% Fibo of the recent daily range guarding a run towards the 200 D EMA and then the 25200 level, as being around the 11th March swing lows. On a break of 25000, bears can look towards 24500s and then 50% of the upside run made at the end of Dec at 24150.

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