Dow Jones rallied 4.53% yesterday as traders focus on headlines that Super Tuesday voting had Joe Biden picking up some key wins, and he will be one of the top candidates in the Democratic party.
Dow Jones recovered all of the previous day losses after the emergency rate cut by the Fed in an attempt to off-set the coronavirus impact on the economy. Lower interest rates might support equities in the short term but the coronavirus crisis impact is here to stay for this and the upcoming quarter.
On the economic data, the U.S. ISM Non-Manufacturing PMI reading came in at 57.3 well above the market expectations of 54.9 in February and above the previous month reading of 55.5. The Services PMI came in at 49.4 in line with estimates while the PMI Composite came in at 49.6 as expected in February.
Dow Jones managed to recover all od the previous day losses and approached the critical 200-day moving average resistance. The risk-off mood will continue to prevail in the markets as the coronavirus continue to spread in the USA, while the outlook is negative beklow the 200-day moving average.
The Dow Jones Industrial Average Intraday first resistance stands at 27102. If Dow Jones Index breaks above that level in today’s session the next level to watch is at 27,248 the 200-day moving average.
On the flip side, the first support level for the Dow Jones will be met at 26,286 the daily low. If the Dow Jones index breaks below the next support zone stand at 25,714 the low from March 3nd. If bears break below that support the next level to watch is at 25,380 the low from March 2nd.