Dow Bulls Remain In Control Amid Rate Hike Speculations
Wall Street closed with gains, with the DJIA up 102 points or 0.63%, ending the day at 16,433.09, and the week 2.05% higher.
A series of poor US data released on Friday, lifted hopes among stocks investors, on a delay towards December before the Central Bank actually raises rates.
The US Producer Price Index was unchanged in August compared to a month before, and down 0.8% on a yearly basis. Consumer sentiment, according to the preliminary Michigan/Reuters survey, declined down 85.7 in September, the lowest in a year.
The Dow managed to close the week above the 50% retracement of its latest decline and above a still bearish 20 SMA, but the technical indicators are far from supporting additional gains, as the Momentum indicator turned sharply lower above the 100 level, whilst the RSI hovers around 46.
In shorter term, the 4 hours chart shows that the technical readings are mostly neutral, with the index a few points above a horizontal 20 SMA, whilst the technical indicators aim higher around their mid-lines, lacking directional strength.