Wall Street stocks wobble but DJIA technical picture stays bullish above pivot/bullish MAs

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  • The Nasdaq Composite lost 4 points, or less than 0.1%, to end near 7,997.
  • The S&P 500 closed with a loss of around 7 points, or 0.2%, near 2,900.
  • The Dow Jones Industrial Average (DJIA), was off by a marginal 3 points ending around 26,450.

Stocks on Wall Street wobbled and lacked volume, ending slightly lower as the health care sector continues to weigh despite an upbeat backdrop from the Chinese data dump. The S&P 500 closed with a loss of around 7 points, or 0.2%, near 2,900 and the Dow Jones Industrial Average (DJIA), was off by a marginal 3 points ending around 26,450. The Nasdaq Composite lost 4 points, or less than 0.1%, to end near 7,997. Health care is showing cracks in part due to the political climate and calls for lower drug prices and a “Medicare for All”-type health insurance overhaul.

U.S. data, (Analysts at NAZ Bank explained the key data events from the U.S. session):

The US trade deficit fell to an eight-month low in February as imports from China plunged 20%, reined in by additional tariffs. Meanwhile, US exports to China jumped 18% helped to rebalance the trade deficit.

Beige book delivers bland result:  US economic activity grew at a slight to moderate pace in March and April. Wages grew moderately and consumer spending was mixed but sluggish sales reported for retailer and car dealers.

DJIA levels

The technical picture stays bullish on the daily charts while the price holds above the daily pivot and the daily 20 and 50 EMA. Bulls have been in pursuit of the October highs, although there is a lack of momentum and volume coming through; Thus, the longer that price stays stagnant below R2 located at 26750, with stochastics in overbought territory,  a bearish switch up could come in to play and soon. A subsequent correction will target the 20-D EMA and 26000 ahead of the 25700s. The 200-DMA is critical at that juncture which meets the 23.6% Fibo retracement of the late Dec rally guarding a break all the way down to 24800 gap area and S2 ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24150.

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