Worldwide stocks plunged this Tuesday, on fear Chinese economic slowdown will spread like wildfire among other major economies.
Wall Street closed in the red, with the DJIA down 469 points or 2.84%, closing the day at 16,058.35. The S&P 500 SPX, fell 58.33 points, or 2.96%, to 1,913.85. The Nasdaq Composite plummeted 140.40 points, or 2.94% to 4,636.10, erasing all previous 2015 gains and turning negative year-to-date, resulting in one of the worst trading days of the year in the US. For more forex technical analysis articles you can visit FBP Forum.
As for the DJIA, the index posted a daily low of 15,978 before recovering some 100 points before the close maintaining, however, a strong negative tone as the daily chart shows that the 20 SMA presents a sharp bearish slope, still well above the current level, whilst the technical indicators extended their declines, now approaching oversold territory with sharp bearish slopes.
For this Wednesday, the 4 hours chart supports further declines, as the index has been steadily falling below its 20 SMA, now bearish around 16,446, whilst the technical indicators head steadily lower in negative territory.
A break below the daily low exposes the index to a continued decline towards 15,570, August 26th daily low, en route to Black Monday’s low of 15,192.
Support levels: 15,978 15,850 15,711
Resistance levels: 16,250 16,330 16,446