US Stocks Fall Sharply Amid Global Growth Concerns
Wall Street plummeted as tech stocks remained under pressure, while oil decline sent the energy sector 2.4% lower.
The Dow Jones Industrial Average dived 140 points to close at 17,750.91, the Nasdaq lost 1.13% to end at 4,763.22, while the S&P ended at 2,063.37, down by 18 points.
US stocks bounced from their lows but risk aversion prevailed, as soft manufacturing figures coming from China and the UK, spurred concerns over a global economic slowdown.
DJIA technical perspective
“The DJIA flirted with late April low of 17,646 before recovering, but a negative tone persists in the daily chart, as the benchmark remained below its 20 SMA, whilst the technical indicators head slightly lower right below their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA has accelerated its decline above the current level and below the 100 SMA, with the shortest at 17,797, now the immediate resistance, whilst the Momentum indicator is flat around the 100 level, and the RSI turned lower around 42, increasing the risk of a downward extension, on a break below the mentioned 17,646 level.”
Support levels: 17,713 17,646 17,574. Resistance levels: 17,799 17,861 17,912.