- The Dow Jones Industrial Average added 65 points, or less than 0.3%, to finish near 25,912, based on preliminary numbers.
- The Nasdaq Composite climbed 0.3% to end around 7,714.
- The S&P 500 rose less than 0.4% to end near 2,833.
US stocks added most gains on Monday as the market waits for the Federal Open Market Committee meeting later this week. To start the day, however, the Dow Jones, especially, was a touch heavy and moved to the downside in the first half of the session on news that US regulators have opened an inquiry into the development of Boeing 737 Max airplanes – Shares of Boeing Co. BA, were down 2% on the news. The index was later finding demand at the 25785 lows and climbed its way back towards the highs of 25924.77 and managed to close higher by 65 points.
Looking ahead to this week’s Fed:
One would expect the event to be favourable for U.S. stocks where we will see interest rates left unchanged and the central bank sticking to its “patient” approach to policymaking. Markets will be tuned in to see if there will be any announcements with respect to the balance sheet – Markets are of the informed opinion that “quantitative tightening” is coming to an end and that is where the gravy is for stock prices.
DJIA levels
Despite the Boeing scenario, the DJIA has added to last week’s winning streak and bulls are headed back towards the 78.6% Fibo target located around the psychological 26000 level. However, failures there opens risk towards a downside target at the 61.8% Fibo level positioned beneath the 25000 psychological level at 24847. A break there brings in the 38.2% Fibo at 24500 and then the 50% Fibo just below the psychological 24000 level.
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