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1 Feb 2016
US stocks close little changed
FXStreet (Córdoba) - US stock indexes ended the day with mixed results, after hovering between gains and losses for most of the session, unable to set a clear directional trend.
The DJIA retreated from a daily high of 16,510 right before the closing bell, to end the day at 16,449.18, down by 17 points or 0.10%. The Nasdaq added 6 points, or 0.14%, to 4,620.37. The S&P closed the day barely unchanged, down by less of a point, or 0.04%, at 1,939.38.
On the data front, US personal income rose 0.3% in December versus 0.2% expected, while personal spending remained flat in the same period, against a rise of 0.1% expedited. Meanwhile, the PCE deflator, Fed’s preferred gauge of inflation, advanced 0.6% over the year, matching forecasts while excluding food and energy, PCE rose 1.4%, as expected.
The ISM manufacturing PMI came in line with expectations at 48.2, showing continued contraction in the sector.
DJIA technical view
“Technically, the daily chart shows that the bullish tone seen on previous updates in the DJIA persists, given that the index erased most of its early losses, triggered by falling oil prices. In the mentioned chart, the 20 SMA is now flat, far below the current level, while the Momentum indicator heads higher at fresh 2-month highs, while the RSI indicator has turned flat around 51”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hour chart, the 20 SMA has advanced above the 100 SMA, with both well below the current level, while the technical indicators turned south near overbought readings, rather reflecting the latest retracement than suggesting a bearish move ahead”.
“Some earnings reports will be released after the close, which means the index can continue trading on local data. Nevertheless, overall market sentiment is turning negative, which means that if risk aversion re-surges during the Asian session, the index will likely head lower, and will maintain the bearish bias for most of this upcoming Tuesday.”
Support levels: 16,387 16,310 16,240. Resistance levels: 16,510 16,545 16,619.
The DJIA retreated from a daily high of 16,510 right before the closing bell, to end the day at 16,449.18, down by 17 points or 0.10%. The Nasdaq added 6 points, or 0.14%, to 4,620.37. The S&P closed the day barely unchanged, down by less of a point, or 0.04%, at 1,939.38.
On the data front, US personal income rose 0.3% in December versus 0.2% expected, while personal spending remained flat in the same period, against a rise of 0.1% expedited. Meanwhile, the PCE deflator, Fed’s preferred gauge of inflation, advanced 0.6% over the year, matching forecasts while excluding food and energy, PCE rose 1.4%, as expected.
The ISM manufacturing PMI came in line with expectations at 48.2, showing continued contraction in the sector.
DJIA technical view
“Technically, the daily chart shows that the bullish tone seen on previous updates in the DJIA persists, given that the index erased most of its early losses, triggered by falling oil prices. In the mentioned chart, the 20 SMA is now flat, far below the current level, while the Momentum indicator heads higher at fresh 2-month highs, while the RSI indicator has turned flat around 51”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hour chart, the 20 SMA has advanced above the 100 SMA, with both well below the current level, while the technical indicators turned south near overbought readings, rather reflecting the latest retracement than suggesting a bearish move ahead”.
“Some earnings reports will be released after the close, which means the index can continue trading on local data. Nevertheless, overall market sentiment is turning negative, which means that if risk aversion re-surges during the Asian session, the index will likely head lower, and will maintain the bearish bias for most of this upcoming Tuesday.”
Support levels: 16,387 16,310 16,240. Resistance levels: 16,510 16,545 16,619.