23 Feb 2016
US stocks fall sharply weighed by oil
The DJIA index closed 189.08 points or 1.14% lower on Tuesday at 16,431.58. The S&P 500 index closed 1.23% lower at 1,921.60 and the tech heavy Nasdaq declined 1.6%.
Investors got a reminder about the vulnerability of the stock market rally to gyrations in oil prices. Drop in Chinese yuan and the slide in oil was enough to trigger a flight to safety.
Energy shares and materials producers led declines. Shares in Freeport-McMoRan Inc. declined 6.5% and shares in Chevron Corp fell 4.2%. Banking stocks also took a hit, with JP Morgan sliding more than 3%.
DJIA technical view
"From technical perspective, the DJIA index appears weak after breaching the rising trend line in the 4 hours chart while the RSI is pointing to a dip below the 50.00 level as well", said Omkar Godbole, analyst at FXStreet. "Furthermore, the daily close below 16,510 adds credence to the bearish view. Overall, short-term bearishness is likely and the upticks could be sold into unless the index rises above Monday’s high of 16,665".
Support Levels: 16,348 16,204 16,164. Resistance Levels: 16,510 16,665 17,019.
Investors got a reminder about the vulnerability of the stock market rally to gyrations in oil prices. Drop in Chinese yuan and the slide in oil was enough to trigger a flight to safety.
Energy shares and materials producers led declines. Shares in Freeport-McMoRan Inc. declined 6.5% and shares in Chevron Corp fell 4.2%. Banking stocks also took a hit, with JP Morgan sliding more than 3%.
DJIA technical view
"From technical perspective, the DJIA index appears weak after breaching the rising trend line in the 4 hours chart while the RSI is pointing to a dip below the 50.00 level as well", said Omkar Godbole, analyst at FXStreet. "Furthermore, the daily close below 16,510 adds credence to the bearish view. Overall, short-term bearishness is likely and the upticks could be sold into unless the index rises above Monday’s high of 16,665".
Support Levels: 16,348 16,204 16,164. Resistance Levels: 16,510 16,665 17,019.