- Global growth fears weigh on stocks.
- Uncertainties over Brexit remain at the fore.
Following downgrades to GDP from both the ECB and Fed in recent times, the apprehension over softer global continues to fuel appetite for debt which has pushed yields on longer-term government debt to levels not seen in more than a year. Subsequently, equities are back in the red and stocks on Wall Street, despite a recovery from their lowest levels in the benchmarks followed Europe’s lead and ended lower. The Dow Jones Industrial Average fell 32.14 points, 0.1%, to 25,625.59, while the S&P 500 index dropped 13.09 points, or 0.5%, to 2,805.37 – Health care and energy sectors among the worst performers. Finally, the Nasdaq Composite Index lost 48.15 points, or 0.6%, to 7,643.38.
Brexit risk
Meanwhile, the clock is ticking considering that last week, the EU gave Mrs May until just April 12th to bring back an alternative plan if she cannot finally get her twice-rejected Brexit deal through the Commons in a “meaningful vote” this week. The Prime Minister is reportedly preparing to bring her Brexit deal for a third vote by the end of the week, if she was able to gain the support of Northern Ireland’s DUP. However, the DUP had said only a day earlier that it favoured a long delay over May’s withdrawal agreement.
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Brexit voting underway: The Statutory Instrument to amend Brexit Day in UK law Yes 441 / No 105
DJIA levels
The DJIA is capped by the 21-D SMA, trading around the pivot still leaving a doji on the charts. However, since suffering a sell-off from last Tuesday’s high of 26109, until the 26000 level is breached again, there is the risk of a run all the way down to the 23.6% Fibo retracement of the late Dec swing lows to late Feb swing highs at the low end of the twenty-five hundreds. This area guards a break all the way down to the 38.2% Fibo of the same range around 24400.
Support levels: 25310 25101 24700
Resistance levels: 25767 25909 26022
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