Dow Jones futures trade slightly higher extending the previous week 3% gains for Dow Jones. President Trump signed a new relief package replacing the 600 per week unemployment benefit with a $300 per week, extended a federal moratorium on evictions, and provided a payroll tax holiday. Dow Jones boosted last week by better than expected NFP data on Friday that beat markets expectations. Now the U.S. economy has recovered almost 44% of the jobs lost during the coronavirus lockdown.
On the trade war from between the two superpowers, China sanctioned 11 U.S. citizens in retaliation to Washington which announced yesterday the sanctions to 11 Chinese officials. The tensions rose last week after President Trump banned Wechat and TikTok in dealing with U.S. citizens starting in 42 days from today.
Kodak shares plunged in premarket after the U.S. International Development Finance Corporation announced the investigation of wrongdoing by Kodak over the recent loan by the Government. Rumours said that Twitter is interested in the U.S. operations of TikTok, and would be competing with Microsoft (MSFT), which has already started negotiations with TikTok.
Fear and Greed Index Jumps to 71
The fear and greed index jumps to 6endedn last week at 71 as the Wall Street indices finished higher for the sixth consecutive session. Now the fear and greed index is well into the greedy territory, adding almost 20 points the last month.
Dow Jones Daily Technical Analysis
Dow Jones futures trading higher for the sixth straight day adding 0.38% at 27,436, making consecutive higher highs and higher lows. Meanwhile, a gold cross is forming as the 50-day moving average crossed the 200-day moving average giving a new bullish signal and pointing to higher levels for the index.
Resistance for the Dow Jones futures stands at 27,471 today’s top. Next hurdle would be met at 27,611 the high from June 9.
On the other hand, first support for futures is at 27,260 the daily low. A break below might test 26,663 the low from August 5. More bids will wait at 26,236 the 50-day moving average.