Dow Jones futures trading higher for the fourth straight session as the bullish momentum in Wall Street continues to drive stocks to record highs. Yesterday S&P 500 and Nasdaq ended to fresh all-time highs.
Headlines that there is an improvement in trade relations between China and the USA supports investors sentiment. U.S. trade representative Lighthizer and China’s Vice Premier Liu He after a telephone conversation said that phase one deal was progressing and hinted that we might see further improvement.
Yesterday positive news about the coronavirus treatment helped stocks. The Federal Drug Administration (FDA) approved the use of blood plasma from recovered COVID-19 patients as a new treatment option. The Drug Administration is also considering proceeding with fast-tracking approval for the COVID-19 vaccine called AZD7442, produced by Oxford University and AstraZeneca.
Dow Jones is Changing!
After Apple decision to proceed to 4-1 stock split, new stocks will enter the prestigious Dow Jones Industrial Average. Honeywell will take Raytheon Technologies position, Amgen will replace Pfizer and Salesforce will take Exxon Mobil position. The Dow Jones changes will go into effect on August 31.
Fear and Greed Index Continues Into the Greedy Territory
The fear and greed index jumped to 73 as the two major Wall Street indices hit record highs. The index the last week was at 70 while one month ago it was at 63. The fear and greed index capitalize on the improvement in China – USA trade relationships and the positive news about the coronavirus vaccine.
Dow Jones Analysis
Dow Jones index finished yesterday at six-month highs as the index continue to make consecutive higher highs and higher lows. The technical picture for Dow is bullish, and the pullbacks should provide a buying opportunity. The index will enter today overbought levels so a sharp correction can’t be ruled out.
Dow Jones immediate resistance would be met at 28,314 today’s high. We have to go back to February 21 to find the next hurdle at 29,147. More selling pressure awaits at 29,410 the top from February 13.
On the contrary, support is at 28,041 the low from yesterday. More bids would emerge at 27,699 the low from August 21. If the bears break that level, then the next support would be met at 27,501 the low from August 20.