The Dow Jones futures trading higher for one more day breaking above the 200-day moving average as the optimism about a fast recovery in the economy continues to push risky assets and stocks around the globe higher.
European equities continue yesterday’s rally after the ECB surprised markets adding 600 billion to its PEPP program above the analyst’s expectation of 500 billion increase. Oil and travel stocks lead the way to three-month highs, as travel ban eased in many countries across Europe.
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Investors await the May jobs report as 20.5 millions of Americans lost their jobs in April. For May analysts expect that almost 8.3 million lost their jobs, while yesterday the initial jobless claims came at 1.9 million. The unemployment rate will reach 20% in May from 14.7% in April and the expectations are that the unemployment rate should get to 13% by September and 11% by December.
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Boeing ended 6.43% higher at 184.30, Travelers was 3.08% higher at 118, Goldman Sachs ended 2.02% higher at 214.82, and JPMorgan Chase 2.08% higher at 106.44.
The Dow Jones futures are 1.19% higher at 26,571, S&P 500 futures are 0.79% higher at 3,135, while Nasdaq futures are 0.35% higher at 9,659.
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If gold prices were to trade above the October 25 high of $1518.41, then the price might be able to reach the $1563.14 level, as the difference between the upper and lower limit of the pattern is added to the October 25 high. On a break to the October 11 low at $1473.68, the price might be able to reach the $1428.95, as the difference in the range is subtracted from the October 11 low.
Time will tell if bullish or bearish traders will command price as the chart pattern itself is neutral in its outlook.
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