US stocks end with sharp losses

FXStreet (Córdoba) - Worldwide stocks closed again in the red, led by another halt in trading in China, after the Shanghai Composite lost over 7% during the first minutes of activity. Wall Street was no exception, and the Dow Jones Industrial Average closed the day at 16,514.37, down by 392 points, whilst the Nasdaq lost 3.03%, ending the day at 4,689.43 and the S&P closed 2.37% lower at 1,943.09 points.

DJIA technical view

“The DJIA is ending the day at its lowest since October 5th, having posted the largest intraday decline in almost five months. Technical readings support further declines as in the daily chart, the Momentum indicator has resumed its decline to fresh multi-month lows after being rejected from its mid-line, while the RSI indicator is entering oversold territory with a sharp bearish slope, and the index extends below its moving averages.”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators head strongly lower after limited upward corrections within the lower range of the negative territory, now nearing oversold territory. Additional are to be expected early Friday, although the close of the day will be defined later, when the US releases its latest employment data.”

Support levels: 16,456 16,387 16,272. Resistance levels: 16,581 16,693 16,770.