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5 May 2016
US stocks close lower for second day
US stocks closed in the red, with the DJIA down 99 points to end at 17,651.26. The Nasdaq extended its decline by 37 points to end at 4,752.64 while the S&P fell 12 points to 2,051.12.
Mixed data in the US continued suggesting the economy is struggling to slowly advance, with no signs of contraction, but neither of a strong pick up.
Employment data disappointed, as the ADP survey printed 165K against 200K expected, while US productivity fell by a 1% annual rate in the first quarter, marking the fourth decline in the past six quarters. US trade deficit, however, shank to its lowest in a year during March, resulting in 40.40B.
DJIA technical view
“The DJIA daily chart shows that the index extended further below its 20 SMA, whilst the technical indicators gained additional bearish momentum within negative territory, maintaining the risk towards the downside for this Thursday,” said Valeria Bednarik, analyst at FXStreet. “In the 4 hours chart, the 20 SMA has crossed below the 100 and 200 SMAs above well above the current level, reflecting the ongoing strong selling interest, whilst the technical indicators flattened near oversold levels, rather reflecting the lack of volume after the close that suggesting a downward exhaustion.”
Support levels: 17,604 17,530 17,440. Resistance levels: 17,692 17,758 17,812.
Mixed data in the US continued suggesting the economy is struggling to slowly advance, with no signs of contraction, but neither of a strong pick up.
Employment data disappointed, as the ADP survey printed 165K against 200K expected, while US productivity fell by a 1% annual rate in the first quarter, marking the fourth decline in the past six quarters. US trade deficit, however, shank to its lowest in a year during March, resulting in 40.40B.
DJIA technical view
“The DJIA daily chart shows that the index extended further below its 20 SMA, whilst the technical indicators gained additional bearish momentum within negative territory, maintaining the risk towards the downside for this Thursday,” said Valeria Bednarik, analyst at FXStreet. “In the 4 hours chart, the 20 SMA has crossed below the 100 and 200 SMAs above well above the current level, reflecting the ongoing strong selling interest, whilst the technical indicators flattened near oversold levels, rather reflecting the lack of volume after the close that suggesting a downward exhaustion.”
Support levels: 17,604 17,530 17,440. Resistance levels: 17,692 17,758 17,812.