The Dow Jones futures are trading at new all-time highs on this President’s Day holiday in the US.
The Dow is up 0.6% as investors continue to drive risky sentiment that has been brought on by hopes of global economic recovery. Vaccination rollouts in the US and UK continue to meet milestones set by both governments, which is allowing investors to assume risk-on sentiment.
A look at the CNNMoney’s Fear and Greed Index, which is a measure of the sentiment of investors on the Dow Jones, shows that markets are in “greed” territory, with a score of 65.0. This is a higher figure than the 58.0 recorded last week and indicates that public participation in the Dow’s ascent is on the increase.
With very little coming in the form of news, and the Chinese New Year also allowing volumes to dip, the Dow’s ascent on the day takes it to 31663 as at the time of writing.
Technical Outlook for the Dow
Having decisively cleared resistance at 31282, the Dow is now targeting the next anticipated resistance at 32505, which is the 100% Fibonacci extension from the price swing of 14 May to 2 September.
On the other hand, profit-taking at this point brings the Dow to retest the 31282 support, with a further decline below this level contending with 30585 and 30358, in that order. 30101 and 29842 remaining downside targets that are gradually falling out of relevance as the Dow surges to new heights.
Dow Jones Daily Chart