In midweek U.S. indices started the session with a strong decrease, but managed to delete some of the lost positions by the end of the day.
The main factor for the negative session was the strong dollar, which yesterday advanced against the euro by over 0.8 percent to a level of $ 1.3734. The U.S. currency was supported by speculation that the Federal Reserve program to purchase U.S. Treasury bonds in coming months will be worth about 250 billion, which is significantly below the predicted 2 trillion.
Economic data were better than analysts expected, but that does not change the mood among market participants. Orders for durable goods for September rose 3.3%, beating the expected increase of 2.0%. Meanwhile, new homes sales rose to 307 thousand compared to 301 thousand estimated.
On corporate level energy sector experienced a significant decrease after after weekly oilinventory numbers showed stockpiles growing by about 5 million barrels.
Exxon Mobil and ConocoPhillips fell by 1.25 percent each to respectively $65.67 and $60.08, while Chevron Corporation lost 1 percent to $84.31 per share. ConocoPhillips reported better than expected results for the third quarter, but kept its forecast to year-end without change which discouraged the investors.
Among the indices S&P 500 lost 0.27% to 1182 points. Dow Jones Industrial Average fell with 0.39% to 11,126, while Nasdaq Composite gained 0.24% to 2503 points.
TECHNICAL OVERVIEW
S&P 500 – USA
The short term picture remains unchanged as S&P500 consolidates around 1185. If broken successfully next targets will be the resistances at 1220 and 1250. On the downside, support is seen at 1150, followed by 1120, which coincides with the 200-days SMA, and 1090.
