Dow Jones Futures Lower, Fear and Greed Index Stays Below 50

The Dow Jones futures trade lower in premarket as the daily number of new coronavirus cases in the USA hit record highs. Dow Jones with a late-day rally, ended higher after a weak opening, supported by better than expected Durable Goods data. The Durable Goods Orders came in at 15.8%, beating the estimates of 10.9% in May. The Jobless claims totalled 1.48 million the previous week as unemployment remains high amid the COVID-19 lockdown. The first-quarter GDP came at -5% in line with expectations.

On the trade war front, U.S. Senate voted legislation that would impose sanctions on companies or people that back efforts by Beijing to restrict Hong Kong’s autonomy.

Banks and financials boosted after the Fed’s announced the stress tests results showing that the largest 34 banks remain well-capitalized. U.S. financial regulators also eased the rules that restrict banks from investing in hedge funds or private equity funds. Goldman Sachs ended 4.59% higher at 207.10, JP Morgan was 3.49% higher at 97.96, and American Express finished 2.48% higher at 97.85.

Nike shares trading 3% lower in premarket after the company reported a loss of 51 cents per share and revenue of $6.31 billion for its 4Q.

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Fear and Greed Index Stays Below 50

The fear and greed index added one point yesterday and now is at 49, pointing to a neutral emotion in markets. The index rebounded after a slide to 48 earlier this week amid a rising number of coronavirus infections.  

The put/call ratio in CBOE is at 0.57 while the CBOE Volatility Index (VIX) or fear index ended yesterday 5.02% lower at 32.14.  

Dow Jones Daily Technical Analysis

Dow Jones ended 1.18% higher at 25,745 as the index managed to rebound from one-week lows. The index rejected many times the last two weeks at the 200-day moving average. The short term momentum is negative for the index below the 200-day moving average. Bulls will be in full control only if the Dow Jones breaks above the 200-day moving average at 26292.     

On the downside, first support for Dow Jones is at 25,209 the low from yesterday’s trading session. Next support for the Dow Jones index will be met at 24,830 the 100-day moving average. A break below 24,830 might open the way for a test of 24,292 the low from May 22.

On the other side, initial resistance for the Dow Jones index stands at 25,769 the high from yesterday. A move above 25,769 might open the way for a test of 25, the low from June 24. If the bulls continue then the next hurdle for the Dow Jones is at 26,292 the 200-day moving average. 

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