Wall Street's benchmarks adding to the daily correction towards critical technical levels
- The Dow Jones Industrial Average DJIA, ended higher by around 100 points, or 0.4%.
- The S&P 500 finished up by 0.7%.
- The Nasdaq Composite Index closed the session up by 1.3%.
Wall Street added to the daily correction taking form on the charts, adding another positive session on Monday as investors cheer Powell's dovishness accompanied by Chinese authorities seeking to add stimulus to the second largest economy in the world.
Sino/US relations back on track
At the same time that Sino/US trade relations seem to be getting back on track, with officials from Washington and Bejing meeting to negotiate trade and as seen by the markets as potentially increasing the prospects of a deal between the two countries. U.S. Commerce Secretary said that the U.S. and China can reach trade deal 'we can live with'. In economic news, the December ISM non-manufacturing index fell to 57.6%, from 60.7%.
Recent bullish technical corrections in Shanghai and the S&P have seen follow-through buying, while the strength in the energy and banking shares have been lead the recovery, This has resulted in the DJIA heading higher and leaving the 38.2% Fibo retracement of the Dec decline behind. Bulls are hunting down the 50% Fibo retracement at 23765. The price is now through the 21-D SMA located at 23346 with daily RSI drifting with a bullish bias.