US Stocks Post Major Gains With Dow Surging Over 300 Points
US indexes closed strongly up, with the Dow Jones adding 304 points and closing the day at 16,776.43, whilst the Nasdaq advanced 1.56% and the S&P closed up 1.83%.
The strong recovery was led by a rally in energy and commodity-related shares, which surged following the latest US poor employment data that took out of the picture a rate hike or this 2015. The DJIA closed at its highest level in three weeks and holds near its daily high after the close, supporting an upward continuation rally for this Tuesday.
Technically, the daily chart shows that the index has extended well above its 20 SMA, whilst the technical indicators head sharply higher above their mid-lines, favoring a bullish continuation. In the same chart however, the 100 DMA maintains a strong bearish slope well above the current level, suggesting a longer term rally is still to be confirmed.
In shorter term, the 4 hours chart shows that the 20 SMA has extended above the 100 and 200 SMAs, all together in the 16,300 region, whilst the technical indicators have lost their upward strength near overbought territory.
The key level to break over the upcoming sessions is 16,933, September high, as steady gains beyond it should favor a more sustainable advance in time. In the meantime and for this Tuesday, an upward continuation beyond 16,800 is required to confirm a continued advance towards the mentioned September high.