US stocks fall sharply after Yellen remarks

By FXStreet FXStreet (Córdoba) – US indexes fell sharply following comments from Fed Chair, Janet Yellen, reinforcing the idea of a December rate hike. The DJIA ended the day down 0.89% at 17,730.61, while the Nasdaq lost 0.64% and the S&P ended 1.10% lower.

DJIA technical view

“Technically, the daily chart shows that the DJIA trades at the base of its recent range, still holding above a horizontal 20 SMA, currently offering an immediate support at 17,690 while the technical indicators have turned sharply lower and are currently approaching their mid-lines, getting closer to confirm a downward breakout”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is currently developing below its 20 SMA, while the technical indicators have partially lost their bearish strength, but remain deep in the red, denying at the time being chances of an upward movement. The index may recover on an ECB’s easing extension this Thursday, as most of a US rate hike has been already priced in”.

Support levels: 17,690 17,610 17,521. Resistance levels: 17,770 17,854 17,914.
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Source:: FX Street