Wall Street Crashes Amid China’s Growth Concerns
Wall Street collapsed on Friday, and the DJIA closed the day down 530 points or 3.12% at 16,459.75, its biggest loss of the year.
Stocks worldwide plunged on concerns over China’s economic growth is slowing at a faster pace than what the government recons, whilst tepid US FOMC Minutes had added huge amounts of uncertainty over what the FED will be doing next.
Also, stocks were weighed by a sharp drop in oil prices, as the US continues increasing its output, in an overly supplied market.
The DJIA closed at its lowest since October 2014, and the daily chart shows that the 1000 points decline during the last 3 days, have left technical indicators heading south almost vertically in extreme oversold levels.
In the 4 hours chart the RSI indicator is heading lower around 14 whilst the Momentum indicator have lost its downward strength, but remains in extreme levels. The index however, may continue its decline during the upcoming days, as the market is being driven by sentiment, and the uncertainty surrounding China and the FED will likely persist.