Dow Jones Futures Bounce Ahead Of Home Sales Data And The FOMC Minutes

The Dow Jones set to start with solid gains after the index in a late sell-off lost yesterday 1.59% to close at 24,206. Investors await later on the day the FOMC minutes from April, but I don’t expect any market-moving insights as the data will most probably be outdated. The discussion around the interest rates might attract some of the investors’ attention even Fed Chairman Jerome Powell has rejected that scenario.

Investors fears for an extension of the lockdown rise as there are some concerns on the reliability of the clinical trial results from the Moderna’s coronavirus vaccine. Secretary Mnuchin in his testimony in the Senate Banking Committee, said that is prepared to distribute the entire $500 billion to help the coronavirus battered businesses. Jerome Powell reiterated the Fed’s commitment to relief programs aimed at keeping markets healthy and getting liquidity to those who need it during the virus crisis.

Dow Jones Industrial Average futures are 1.18% higher at 24,438 while the S&P 500 futures are 1.14% higher at 2,951. Nasdaq futures are 1.03% higher at 9,396.

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Fear and Greed Index Returns to Neutral

The fear and greed index rises from the previous week lows at 39 as the optimism returned to markets on the coronavirus vaccine news. The fear and greed index stands today at 47 as the stabilization continues below the 50 level, which implies greedy sentiment. 

The put/call ratio in CBOE is at 0.70 implied that investors had shifted their attention mostly on call options. The Volatility Index (VIX) or fear index ended yesterday 1.88% lower at 28.81.  

Dow Jones Price Technical Analysis

Dow Jones ended 1.59% lower on Tuesday at 24,206 as the index retreated from monthly highs, but keeping the recent rebound from the March lows as the index trading above the 50-day moving average. The long term technical picture remains bearish as long as the Dow Jones index trades below the 100-day moving average.   

On the downside, first support for Dow Jones index is at 24,203 the yesterday low. Next strong support for the Dow Jones index will be met at 23,298 the low from May 15. A break below 23,298 might open the way for a test of 22,844 the 50-day moving average.   

On the other hand, first resistance for the Dow Jones index stands at 24,599 the top from yesterday trading session. A move above might test 25,036 the high from March 10. The next supply zone for the index is at 25,604 the 100-day moving average.  

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