Wall Street closed with gains, with the DJIA surging 241 points or 1.39%, closing the day at 17,615.17. Having been under selling pressure for over a week, the index surged following a recovery in oil prices that boosted energy-related equities.
Additionally, the less-than-encouraging tone of FED’s officers in regard to a rate hike in September boosted investors sentiment, with the index erasing most of last week losses.
Technically, the daily chart shows that the 20 SMA maintains a strong bearish slope a few points above the daily high, offering an immediate resistance around 17,660, while the technical indicators have bounced sharply from oversold levels, and are now about to cross their mid-lines towards the upside, suggesting some follow through beyond the level may trigger another strong rally.
Shorter term, the 4 hours chart shows that the index extended well above its 20 SMA whilst the technical indicators are beginning to lose upward strength near overbought levels, pointing for some consolidation ahead of the next directional move.