US stocks reverse losses by the close

By FXStreet FXStreet (Córdoba) – US stocks closed mixed a quite a choppy trading session, where the Dow and the S&P 500 erased most of its early losses right before the close.

The DJIA closed the day up by 52 points, or 0.32%, at 16,398.57. The S&P advanced 1.64 points, or 0.09%, to 1,923.67. However, the Nasdaq lost 5 points, or 0.12%, to 4,637.99.

American traders shrugged off the negative mood from the first half of the day ahead of the earnings season, but were unable to rally as oil fell to fresh cycle lows.

DJIA technical view

“The daily chart for the Dow shows that the technical indicators have lost their bearish momentum, but remain within oversold territory, as the 20 DMA extended its decline further below the 100 and 200 DMAs”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the negative tone prevails as the technical indicators have advanced within negative territory, rather correcting oversold readings than suggesting the rally can extend. At the same time, the 20 SMA maintains a strong bearish slope above the current level, providing a strong dynamic resistance around 16,509”.

Support levels: 16,299 16,235 16,165. Resistance levels: 16,428 16,509 16,591.
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Source:: FX Street