U.S Stocks Fall After Comments From European Central Bank Sources
U.S stocks tumbled on Thursday after European Central Bank sources said that the bank is not currently considering further stimulus measures.
The comments weighed on stock markets around the world, with the Dow Jones Industrial Average falling more than 131 points, or 0.42%.
The ECB’s recent comments that 75 basis points is not off the table for October if inflation persists has reversed the US stock indices.
- The US30 is now down 132 points or -0.42%
- The DJI is down -131.60 points or -0.42%
- The NASDAQ is now down -90.6 points or -0.74%
- The US500 is now down 16.3 points or 0.41%
The price of the NASDAQ moved up to test the 50% level of the range since the June low today. The high price reached 11896.73 before rotating back down.
The price of the NASDAQ index reached a high of 11896.73 today, before falling back down again. This is a significant move, as it represents a test of the 50% Fibonacci retracement level from the June low near 11870.00.
The chart below shows the NASDAQ index over the past few hours, with the Fibonacci levels marked. As you can see, the 50% level is a key level of resistance that the price has struggled to break through in recent days.
Only time will tell whether today’s move represents a true breakout above this key level, or if it is simply a false move that will quickly reverse. However, the fact that the price was able to reach 11896.73 before falling back suggests that there is bullish pressure building in this market.
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