Dow Plunges Amid Dovish Remarks By Yellen
The Dow Jones Industrial Average lost 65 points by the end of the day, closing in the red at 16,674.74.
Nevertheless, the daily chart shows that the index is hovering around the 61.8% retracement of its latest bearish run, unable to extend below it, whilst the 20 SMA maintains its bullish strength well below the current level, the Momentum indicator continues heading higher above 100 and the RSI indicator turned slightly lower, but remains above 50, all of which limits the downside.
In the shorter term, the 4 hours chart shows that while the technical indicators have turned sharply lower, they remain above their mid-lines, whilst the 20 SMA heads higher around the daily low of 16,615.
It would take a break below this last to confirm a bearish continuation, eyeing then an approach to the 16,380 region.
Wall Street started the day with strong gains, as investors anticipated an on-hold stance, as it finally happened, by the US Central Bank. What took them by surprise was the dovish statement from Mrs. Yellen, who expressed its concerns on how a global economic slowdown may affect the US economy.