Dow Jones Crawls Back at Key Level – Fear and Greed Index at 69
Dow Jones futures are rising as investors attempt to push the index higher following days of volatile trading. The index is up by more than 200 points and is trading at $27,753, which is slightly above yesterday’s low of $27,400.
The Dow Jones index had a volatile day yesterday as focus remained on the vulnerable technology sector. This saw top stocks like Apple, Facebook, and Microsoft close significantly lower.
The Dow is gaining today probably because of a weaker US dollar. The dollar index, which measures the performance of the greenback against a set of currencies, is down by 0.20%. A weaker dollar is usually a good thing for the Dow because most companies in the index do most of their business abroad.
The index is also gaining because of a landmark trade deal between the United Kingdom and Japan. In a statement earlier today, Japan and UK officials announced that negotiations between the two countries had ended with a deal. That is the first deal that the UK has struck since Brexit. Subsequently, a deal between the two countries is a positive thing for the Dow Jones because of the amount of business that these companies do. However, the differences between the UK and the EU are a thorn in the flesh for the Dow.
Meanwhile, the fear and greed index show that greed has returned to the market. This index is currently at 59, which is a sign that investors have started to get greedy. At the same time, volatility has also dropped. The S&P 500 volatility index (VIX) has dropped by more than 3.60% a day after it dropped by more than 5%.
Dow Jones technical outlook
The daily chart shows that the Dow Jones index is up slightly today. It is currently trading at $27,753, which is above the 50-day and 100-day exponential moving averages. It is also slightly above the ascending trendline that is shown in black. This line connects the lowest levels on June 15, June 29, July 31st, and September 9, respectively.
Therefore, I suspect that the price will continue rising today as bulls attempt to move to the psychological level of $28,000. On the flip side, a move below the yesterday’s low of $27,400 will mean that bears have prevailed. This price is along the ascending trendline and the 50-day EMA.