US stocks advance ahead of Fed decision

By FXStreet FXStreet (Córdoba) – US indexes closed with gains for second straight session underpinned by firmer oil prices as investors prepare for the Federal Reserve policy announcement tomorrow.

The Dow Jones Industrial Average rose 156.41 points, or 0.9%, to 17,524. The S&P gained 21.47 points, or 1.06%, to 2,043. The Nasdaq Composite climbed 43.13 points, or 0.87%, to 4,995. The three main indexes seem now poised to extend their rallies, at least from a technical point of view.

It has been a long time ever since Wall Street priced in a Fed rate hike, and uncertainty now surrounds any announcement on what’s next afterwards. Nevertheless, a hawkish stance can boost the greenback and imply some bearish movements in local shares, but there’s a good chance that such declines will be short lived.

DJIA technical view

“Daily basis, the DJIA recovered above its 200 DMA while the technical indicators continue heading higher and approaching their mid-lines, but remain still below them”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index has advanced strongly higher beyond a mild bearish 20 SMA, while the technical indicators are losing upward strength above their mid-lines, rather suggesting some consolidation now than a bearish …read more

Source:: FX Street