Wednesday’s Technical Outlook for DJIA (.DJI)
Tuesday, Wall Street is so far ignoring the recent Fed rate hike concerns and moved sharply higher, with the DJIA +213 pts or 1.22% to finish the day at 17,706.07. The NAS Comp advanced 95 pts and closed at 4,861.06, and the S&P 500 rose 1.37% to end at 2,076.06.
A deal between GoPro (NASDAQ:GPRO) and Red Bull to collaborate on content production and distribution fueled sentiment, with GPRO advancing 4.86% on oversold technicals, the Red Bull deal will not save the company.
The technical picture for DJIA
The daily shows that the index has risen above its 20-Day SMA for the 1st time in 2 weeks, and the technical indicators have turned a bit higher, and still within Neutral territory.
In the 4 hours, the Northside seems more constructive, given that the 20-Day SMA has accelerated its advance far below the current marks, and the technical indicators have turned higher near overbought levels, after a limited Southward corrective movement.
The possibility of DJIA now at 17706.05, +1.22%, bouncing to 17750-800 was discussed here Monday, that materialized Tuesday. Despite that boost, the index needs to see a clear break above 17800-950 to signal the end of the correction.
Support marks: 17,682 17,610 17,533
Resistance marks: 17,760 17,848 17,915