US stocks reverse losses and close higher

By FXStreet US stocks ended on a positive note on Wednesday after oil prices rebounded. The DJIA index closed 53.35 points or 0.32% higher at 16,485.13. The S&P 500 index added 0.54% and the tech heavy Nasdaq gained 0.90%.

Oil prices remained the dominant driver of market action with crude prices advancing following the EIA inventory report, which came in below the API estimate. This helped stocks to erase early losses to close higher.

The domestic data was weak, with services PMI dropping to its lowest level in over 2 years. Shares in United Technologies rallied 2%, while those in airliner Boeing fell 2.33%.

DJIA technical view

“From the technical viewpoint, the tables might have turned in favor of bulls as prices closed above the 20-SMA in the 4 hours chart”, said Omkar Godbole, analyst at FXStreet. “The hourly RSI is back above 50.00 as well and pointing higher. The daily chart shows a strong rebound from 20-SMA support. Overall, the index could be bought on dips and appears poised for a bullish move unless it moves back below 20-SMA in the daily chart.”

Support levels: 16,363 16,277 16,217. Resistance levels: 16,605 16,665 17,006.
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Source:: FX Street