Wall Street's rout continues, Dow sheds over 1,000 points
- The dollar and the yen get a late boost from plummeting equities.
- Volatility remains high after the close, with the Dow swinging within a 300 points' range.
US equities opened the day with a soft tone but fear kicked in mid-US session and triggered another panic sell-off, which resulted in the Dow closing the day 1033 points lower at 23,860.12. The Nasdaq Composite shed 274 points, or 3.90%, to end at 6,777.16, while the S&P plunged to 2,581.08, down 100 points or 3.75%. Treasuries bounced at the end of the day, ending it pretty much unchanged, while the greenback and the yen got an extra final boost.
The three major indexes are back into negative territory for this year, and within the Dow, all of the thirty members closed in the red, with Exxon Mobil being the "best" performer by losing just 0.86%, and American Express topping losers list with a 4.89% decline.
Technical outlook
The daily chart for the Dow shows that the index closed again far below its 100 DMA, while the Momentum accelerated its slump, heading now south at fresh lows within oversold territory, while the RSI indicator also changed course, now heading lower around 31, signaling further slides ahead.
In the 4 hours chart, the index closed over 200 points below a bearish 20 SMA, the Momentum indicator entered bearish territory with a sharp downward slope, while the RSI indicator also resumed its decline, currently at 34, supporting the longer term perspective.
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
