Can Dow Jones Follow Nasdaq and S&P To Record Highs?

dow jones
dow jones

Dow Jones futures point to a positive opening in the cash market as the risk-on sentiment continues amid a sell-off in USD. Investors continued to bid on risky assets as Nasdaq and S&P 500 hit record highs yesterday. Nasdaq made 18 record highs since early June. Investors will focus today on the minutes of the last Fed meeting for any clues about the next moves from the Federal Reserve.

Dow Jones gained over 52% since the March lows but still is far away from the record highs reached in February. Wall Street boosted yesterday by better than expected earnings from the major retailers, and a strong rebound in new housing starts data.

Today Target also reported a stellar quarter. The adjusted Earnings Per Share came at $3.38, smashing the analyst’s consensus of $1.62. The Revenue climbed to $23 billion, also above the expectations of $20.09 billion. Same-store sales grow by 24.3%.

Among the top performers, yesterday in Dow Jones were Nike, Apple, Microsoft and Coca Cola. On the other hand, Cheron, JP Morgan Chase and Home Depot ended in the red.

Dow Jones Technical Analysis    

Dow Jones index ended lower for the second straight day yesterday at 27,778, as the index corrects from recent highs and despite the new records from the other two major indices. The recent rally stalled at 28,158 and a consolidation phase started. 

Support for Dow Jones today is at 27,668 the low from yesterday, while a break below might push the index towards 27,458 the low from August 10. Next support area is at 26,914 the low from August 5.

On the contrary, initial resistance for Dow Jones is at 27,891 the top from yesterday. More selling pressure awaits at 28,033 the high from August 12, while the next supply zone is at 28,142 the high from August 11. 

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Dow Jones Daily Chart

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