US stocks close mixed after Yellen testimony

By FXStreet US stocks closed mixed on Wednesday after Janet Yellen’s testimony, as reiterating economic conditions will likely warrant gradual rate hikes, she acknowledged the downside risks to the economy coming from abroad.

After quite a choppy session, the DJIA closed down 99 points at 15,914.60, the Nasdaq added 0.35% to end at 4,283.59, while the S&P ended flat at 1,851.86.

DJIA technical view

“The daily chart for the DJIA shows that the index once again failed to sustain gains beyond its 20 SMA, although it managed to advance up to 16,199 intraday. In the same chart, the Momentum indicator hovers around its mid-line, showing no directional strength, but the RSI indicator heads lower around 39, in line with further declines”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that the index is unable to clearly advance beyond a bearish 20 SMA, while the Momentum indicator is stuck around its mid-line, and the RSI heads south within bearish territory, also supporting a bearish continuation on a break below 15,874, the immediate support”.

Support levels: 15,874 15,795 15,692. Resistance levels: 16,034 16,130 16,192.
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Source:: FX Street