Stocks Advance as Treasury Strategy Buoys Sentiment
Major U.S. stock benchmarks traded higher as investor sentiment was bolstered by the Treasury Department’s plan to ease bond market pressure through buyback operations. The Dow Jones Industrial Average (DJIA) gained 98.98 points (+0.19%) to trade at 53,442.38. Meanwhile, the S&P 500 rose 23.41 points (+0.30%) to reach 7,715.17, and the Nasdaq Composite added 47.23 points (+0.18%) to sit at 26,336.94.
Dow Jones Industrial Average
Dow Jones Industrial Average (DJIA) opened higher and made an early bullish push during the session. However, buying momentum waned intraday, pulling price action back down near its opening level. Although the index remains in positive territory for the day, the fading upward momentum leaves it vulnerable to a continued slide that could erase all session gains. On the lower side, traders should monitor the ascending trend line and the previously broken swing high near the 53,454 level (-0.272 Fibonacci extension) as critical support to watch. A breakdown below this confluence could signal a deeper correction toward the 100 EMA at 51,294.27.
First Solar, Inc. (FSLR)
Shares of First Solar, Inc. (FSLR) previously bounced off the purple box support area ($198.87 – $228.50) and printed a swing high. The stock has now turned lower again to retest this zone, currently trading around the 200 EMA ($225.40) and the 0.382 Fibonacci level ($228.50). If a bounce occurs and price action can print a higher swing high, the overarching trend could turn more bullish. Otherwise, forming a new lower swing high followed by a breakout below the support area will serve as bearish confirmation by printing a lower swing low.