Can Dow Jones Close Above 29,000 Today

Dow Jones Industrial Average ended the session on Friday 0.46% lower at 28,823.77. The index briefly topped 29,000 but the weaker NFP report pressured the index.  US economy added just 145,000 jobs in December, below the expectations of 166,000. Also, the firm number in November was revised to 256,000 from 266,000. The unemployment rate in the US was steady at 3.5%.

Markets this week will be closely watching the signing of the phase one trade deal on January 15th. Investors are looking for fresh clues on how quickly the two superpowers can start the negotiations for the second phase.

The Dow Jones futures are 0.42% higher at 28,897, the Nasdaq is 0.47% higher at 9,021, and the S&P 500 futures are 0.38% higher at 3,277.

Read our Best Trading Ideas for 2020.

Dow Jones Bullish Momentum in Good Shape

Dow Jones rally is still in good shape despite the Friday’s pullback. Risk appetite and excess liquidity are the main drivers of the rally in equities as the geopolitical tensions ease.

The man benchmark face the resistance at 29,009.1 the high from Friday and the all time highs. If Dow Jones breaks above that level today the next level to watch is at 29,500   the psychological resistance.

On the other hand, immediate support for the index will be met at 28,789 Friday’s session low. While  abreak below might open the way for a visit down to 28,384 the low from December 31st.  The 50-day moving average at 28,059 is the critical support to the downside. A break below might cancel the bullish momentum at least for the short term.

Don’t miss a beat! Follow us on Telegram and Twitter.

More content