Dow Jones Up by 3.95% After A Record-Breaking Intraday Gain
Wall Street closed sharply higher, with the DJIA up 3.95% or 619 points, closing the day at 16,285.51, and posting one if its largest ever intraday gain.
The limited slide in Chinese stocks after the latest PBoC decision to cut rates, alongside with Dudley’s comments, suggesting that the FED may delay a rate hike, boosted optimism among US traders.
The benchmark however, is still far from Friday’s close around 16,455, the level to break to confirm an interim bottom in place.
Technically the daily chart shows that the 20 SMA maintains a sharp bearish slope well above the current level, although the technical indicators head clearly higher, recovering from extreme oversold readings and supporting and upward continuation, at least in corrective mode.
The 4 hours chart presents a more constructive outlook, as the Momentum indicator has crossed above its 100 level and maintains its bullish slope, whilst the RSI indicator heads higher around 49 and the index extends below its 20 SMA, still with a clear bearish slope.