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Wall Street recovers from session lows in late trade, DJIA heavy below 38.2% and 23.6% Fibos

  • Wall Street ended at better levels than the Monday session lows the Dow had lost more than 500 points, while the S&P had shed 50 points and the Nasdaq had been down 81 points at one stage.
  • The DJIA went on to bring a modest gain of 33 points, or 0.1%, to close around 24,422 while the S&P 500 SPX, +0.18% rose by 0.2% to end around 2,637, based on preliminary numbers while the NASDAQ Composite COMP, climbed 0.7% to around 7,021.

The global market sentiment is fragile on growth concerns relating to global relationships from Brexit to the Sino/US dispute that was recently antagonised by Chain's warnings of 'severe consequences' over Huawei chief's arrest if the country’s authorities did not immediately release her.

Meng Wanzhou was detained on 1 December and faces extradition to the United States to face fraud charges - (Prosecutors have alleged that she covered up her company’s links to a firm that violated sanctions by attempting to sell equipment to Iran). U.S. Trade Representative Robert Lighthizer told CBS’ Face the Nation on Sunday that he considers the 90-day moratorium from new tariffs granted to the Chinese a “hard deadline,” and that the administration is not considering delaying an escalation of the trade conflict if the two sides can’t agree to an armistice by March 1. Meanwhile, the weekend's data was also showing a sharp slowdown in Chinese export growth reinforced fears that the best of the current bull market is behind us. 

DJIA levels

  • Support levels: 24087 23778 23247
  • Resistance levels: 24591 24900 25404

While the DJIA remains submerged below both the 38.2% and 23.6% Fibo of the recent rout, bears can stay on top while daily RSI remains negative and eyes stay S2 at 23778. However, the long pin bar on the daily sticks below S1 should be a warning to bulls. 


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