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US stocks close sharply lower

FXStreet (Córdoba) - Wall Street closed deep in the red on Thursday, as tanking commodity prices weighed energy and materials sectors.

The Dow Jones Industrial Average lost 254.15 points, or 1.44%, to 17,448.07. The S&P 500 Index fell 29.03 points, or 1.40%, to 2,045.97. The Nasdaq Composite Index dropped 61.94 points, or 1.22%, to close at 5,005.08.

Stocks accelerated their declines by the end of the day, weighed mostly by a sharp decline in commodity prices, particularly in oil and precious metals. All through the day, Fed officials hit the wires, for the most, supporting the case for a December rate hike, which also weighed on equities.

DJIA technical view

“The strong decline has sent the index below its 200 DMA for the first time since mid October, and the technical indicators in the daily chart are heading south below their mid-lines, all of which anticipates a continued decline for this last day of the week”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have entered oversold territory, and maintain strong bearish slopes, whilst the 20 SMA is turning lower far above the current level, in line with the longer term outlook”.

Support levels: 17,391 17,268 17,175. Resistance levels: 17,518 17,589 17,670.

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