Wall Street ends just shy of highs; DJIA above 21-D SMA and targets break of 26000 psychological level
- The Dow Jones Industrial Average DJIA, +0.82% rose 211.22 points, or 0.8%, to 25,928.68.
- The S&P 500 index SPX, +0.67% gained 18.96 points to 2,834.40, a rise of 0.7%.
- The Nasdaq Composite Index COMP, +0.78% advanced 60.16 points, or 0.8%, to 7,729.32. DJIA, +0.82%
Wall Street was firm into the close and chasing the session highs across the benchmarks, albeit falling just shy of those while the optimism over progress on U.S.-China trade talks trumped prospects of slowing global economic expansion and political turmoil in European as May loses a third vote on her deal in Parliament. However, there were some headlines crossing last in the day China’s Xi is somewhat concerned that the sides seem to be at odds due to a disagreement over what should happen to the additional tariffs on each other’s goods after a deal is struck.
“China is insisting that all additional tariffs be removed after the two sides reach a deal. U.S. President Donald Trump, on the other hand, wants the duties kept in place for a “substantial period of time” to maintain pressure on China and protect any deal” – reported the Nikkei.
Meanwhile, The U.S. and China will continue trade talks in Washington on Wednesday. Elsewhere, the focus was on Brexit in Parliament. UK Prime Minister Theresa May was unable to get her deal across the line, losing the vote by 344 to 286 -a slimmer margin, but a tragedy to her premiership nonetheless. The default option is that the UK will leave the EU on 12th April without any firm plan not a deal in place – Sterling took on the 1.30 figure and made a low of 1.2976 vs the greenback.
DJIA levels
As for the Dow, it notched a 1.5% weekly gain and roughly a 0.1% gain for March; The index added11.2% for the first quarter. Technically, the DJIA is now through the 21-D SMA and bulls will look to last week’s Tuesday scored high of 26109 on a breach of the psychological 26000 level. While capped below there, however, there is still the risk of a run all the way down to the 23.6% Fibo retracement of the late Dec swing lows to late Feb swing highs at the low end of the twenty-five hundreds. This area guards a break all the way down to the 38.2% Fibo of the same range around 24400.