Dow Jones futures rebound today recovering all of yesterday’s losses as the positive momentum continues to drive the market. Dow Jones ended 0.38% lower yesterday as the deadlock in negotiations on a new stimulus package weighs in investors sentiment. A late-day sell-off send all significant indices to negative territory, despite the positive opening.
Investors await the inflation data with analysts expecting the CPI to increased 0.3% in July, while the Core CPI is expected to rise by 0.2%. Dow Jones had an impressive six days rally boosted by better than expected economic data and on hopes for a new stimulus from the Trump administration. The news that Russia has approved a coronavirus vaccine also helps stocks.
On the other side, gold sold off aggressively on the vaccine news, while today in European session managed to recover some of yesterday’s losses.
In corporate news, Tesla is adding over 6$ in premarket after the company announced a 5-1 stock split.
Fear and Greed Index Retreat to 71
The fear and greed index retreated to 71 after on Monday ended at 74 the highest level in five months. Yesterday’s losses in Wall Street skirt investors and took some profits off the table. The fear and greed index stays into the greedy territory, amid hopes of a coronavirus vaccine and speculation of the new stimulus package.
The put/call ratio in CBOE is at 39.64 showing that call options outpacing put options, while the CBOE Volatility Index (VIX) or fear index finished 1.67% higher at 22.48.
Dow Jones Futures Technical Analysis
Dow Jones futures are 0.94% higher at 27,875, as the index after a short break yesterday resumed the upward trend. Investors have to be cautious as the futures are entering the overbought area.
Intraday resistance for the Dow Jones futures is at 27,917 the daily top. More selling pressure would be met at 28,096 the high from yesterday’s trading session. More offers would merge at 28,760 the high from February 24.
On the other side, support for Dow Jones futures stands at 27,612 today’s low. More bids expected at 27,231 the low from August 10. What can cancel the bullish momentum is a break below the 50-day moving average at 26,327.