US indexes rally tracking global stocks gains

By FXStreet FXStreet (Córdoba) – US stocks ended higher Tuesday, with the DJIA posting its second-largest daily gains for the year, helped by a late comeback in Chinese shares and positioning following the long weekend.

The Dow Jones Industrial Average DJIA, gained 390.30 points, or 2.42%, to 16,492.68. The S&P 500 advanced 48.18 points, or 2.51%, to close at 1,969.40. The Nasdaq Composite climbed 128 points, or 2.73% to end at 4,811.93.

DJIA technical view

“The index has a critical resistance around 16,660 the 61.8% retracement of its latest weekly fall, and can test it this Wednesday if the positive mood among investors persists. Nevertheless, it will take a clear advance beyond it to confirm bulls are back in control, with the market then eyeing a continued advance towards the 17,000 level”, said Valeria Bednarik, chief analyst at FXStreet. “The broken trend line provides an immediate support around 16,438, and a break below will probably trigger a downward move towards the 16,340 region”.

Support levels: 16,438 16,340 16,228. Resistance levels: 16,554 16,660 16,710.
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Source:: FX Street