The
major US indexes tried to recover during the session on
Tuesday, but at the end of the day all accumulated earnings were lost.
At the beginning of yesterday's market visibly prevailed optimism as China's
central bank reduced the interest rates
and at the same time decreased the requirements for mandatory reserves to
creditors. These changes were necessary and investors took a breath of fresh
air after the chaos of the stock markets since the beginning of the week. The serenity
of the markets did not last long and in the following hours the market
participants reconsidered the situation and the red wave swept over Wall
Street.
It has become less likely Fed to raise interest rates until the end of the year
due to the worsening economic situation in developing markets, the low price of
oil and the weak dollar. The US situation is not satisfactory having in mind the
slowing inflation.
Dow Jones Industrial Average was about
to erase much of Monday’s losses after the beginning of the session climbed
more than 440 pips, but at the end of the day ended at a level of 15 662 points
and reported a decline of 1.3%. The price continues to fall freely, as so far
broke many levels of support along the way. The crossing of the two moving averages
shows that the downward movement may be severe and prolonged, such as forecasts
of some analysts. RSI oscillator shows that the market is oversold and it is
possible to record increases in the index values, even in short-term.
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