US stocks bounce as Brexit-inspired volatility eases

US stocks staged strong recoveries on Tuesday as volatility triggered by the Brexit vote started to recede.

The Dow Jones Industrial Average gained 270 points, or 1.57%, to end at 17,410. The S&P 500 rose 36 points, or 1.78%, to close at 2,036. The Nasdaq advanced 97 points, or 2.12% to finish at 4,692.

DJIA technical perspective

“The Dow erased all of its weekly losses and stands now around Friday's close, still unable to confirm a continued recovery, although the strong bounce after the index approached the 17,000 level should be understood as quite a significant bullish indication,” said Valeria Bednarik, chief analyst at FXStreet. “In the daily chart, the index has regained ground above the 200 DMA, currently at 17,299, but remains far below the 20 and 100 SMAs, whilst the technical indicators are recovering from oversold readings, but remain well below their mid-lines.”

Support levels: 17,351 17,299 17,242. Resistance levels: 17,420 17,494 17,553.