Dow Jones has eased on its rally as investors await this week’s earnings reports to push the stock market to new record highs. After closing last week at a new record high of about 34,264, the index is down by a few points to 34,200. However, it remains on an uptrend following last week’s better-than-expected earnings reports. In today’s session, investors will be keen on Q1’21 earnings from Coca-Cola, United Airlines Holdings, and IBM.
At the same time, the fear & greed index has shifted further into the greed side of the spectrum at 59. It closed last week at a neutral of 51. The junk bond demand, market momentum, and safe-haven demand are all signaling extreme greed among investors. On the other hand, the stock price strength and breadth are both indicating extreme fear in the market.
Dow Jones Technical Outlook
Dow Jones is trading close to the record-high it hit on Friday. On an hourly chart, it is trading above the 25 and 50-day exponential moving averages. With the bulls optimistic that this week’s earnings report will continue last week’s positive streak, 34,400 is the index’s next target.
However, it may waver at around 32,000 points before reaching its target. On the flip side, it may drop to the psychological level of 34,000, where it will find support.
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Dow Jones Chart
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