US stocks fail to track global gains

FXStreet (Córdoba) – Wall Street opened sharply higher, but pared gains mid-American afternoon, and closed deep in the red.

The decline was attributed to raising concerns over a potential rate hike by the FED as soon as next week, following the release of the jobs JOLT report, showing a record rise in job openings in July.

The DJIA down 1.45% or 239 points, ending at 16,253.57, after being as high as 16,695 intraday. The S&P 500 dropped 27.37 points, or 1.39%, to close at 1,942.04, while the Nasdaq Composite lost 55.40 points, 1.15%, to 4,756.53.

DJIA technical picture

“The technical picture shows that the early recovery stalled at a critical intraday resistance, the 61.8% retracement of the latest daily decline around the mentioned high, and is now below the 50% retracement of the same rally, increasing the risk of further declines ahead”, said Valeria Bednarik, chief analyst at FXStreet. “The daily chart shows that the index failed to establish above a bearish 20 SMA, whilst the RSI heads back south around 41, maintaining the negative tone seen on previous updates”.

Support levels: 16,100 15,978 15,871. Resistance levels: 16,296 16,380 16,445.

Wall Street opened sharply higher, but pared gains mid-American afternoon, and closed deep in the red.

(Market News Provided by FXstreet)