Wall Street retreats from highs, Dow ends up anyway
- Market's positive mood eased on Kudlow's words.
- Political uncertainty remains high, sentiment could easily turn back sour.
US equities opened the day with a strong upward momentum, but lost pace mid-US afternoon and retreated from their daily highs. Nevertheless, the Dow Jones Industrial Average closed with solid gains, up 115 points at 24,83.66, although the Nasdaq and the S&P finished in the red, down0.20% and 0.08% respectively.
Comments from US Larry Kudlow, Trump's new top economic adviser triggered some concerns, as he lightly called for a stronger dollar. He has a history of having different views to the president ones on the economy, and once said that Trump's agenda is "anti-growth," spurring uncertainty in the US afternoon.
The recovery in the Dow hasn't been enough to revert the sour tone of the index, as in the daily chart, it settled below its 20 and 100 DMAs, while technical indicators have managed to bounce modestly within bearish territory. In the shorter term, and according to the 4 hours chart, the risk is also skewed toward the downside, given that the index settled below all of its moving averages, which now converge around 25,00, while technical indicators turned flat within negative territory.