Wall Street extends gains on positive earnings reports, oil recovery

US indexes closed with gains this Wednesday, as markets stabilized ahead of key events taking place this Thursday, including two central banks announcements. The Dow Jones Industrial Average added  64 points, to close the day at 21,639.38, while the S&P closed at a new record high of 2,473.82, up by 13 points or 0.54%. The Nasdaq Composite gained 40 points and ended at 6,385.04, also a fresh all time high and up by a ninth consecutive day, as the tech sector led the way higher, while a recovery in oil prices backed energy-related shares, and earnings reports came in better-than-expected. 

Within the Dow, only four members closed lower, with IBM being the worst performer, down 4.42%. El du Pont, on the other hand, led advancers by adding 1.58%, followed by Cisco Systems that gained 1.21%. 

The technical outlook for the DJIA is positive, given that in the daily chart, the index continues developing well above all of its moving averages, with the 20 DMA currently around 20,480, and the RSI indicator regaining the upside, now around 61. In the same chart, the Momentum indicator pared its decline and turned flat within positive territory, not enough to confirm additional gains ahead. In the shorter term, and according to the 4 hours chart, the index is settling barely above its 20 SMA, while the RSI indicator heads north around 58 and the Momentum aims north around its mid-line, in line with the longer term perspective. Supports for this Thursday stand at 21,605, 21,556 and 21,508 while resistances are located at  21,651, 21,682 and 21,730.