Wednesday, 25 May 2016

US stocks strongly uplifted

US stocks recorded strong gains on Tuesday, influenced by the excellent performance of US new home sales in April. 
New home sales surprised with 16.6% jump and thus reached levels not seen from 2008.
Cheered by the news bulls favored the major indices. Dow Jones climbed 1.22% to 17,706.05 points, S&P 500 is up by 1.37% to 2076.06 points and Nasdaq closed higher with 2% to 4861.05 points.
Among the news of the day was the future cooperation of Red Bull with GoPro. Shares of GoPro rose 4.86 % after the news release to 9.71 dollars per share. Technological and financial sector performed best within S& P500. Shares of Visa leaped 2.81% to 79.38 dollars, Morgan Stanley marked a growth of 2.16% and JPM pushed up with 1.7%. 
Technically speaking S&P 500 is extending its upward movement, supported by the liquidity inflows in the economy. The strong rally settled the price above 1900 level. The next resistance is located at the psychological level at 2130. In case of reversal, key support levels might be seen at 1970, 1915 and 1870.

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