The Dow Jones index remains on course for a higher open as investors attempt to shake off a spike in the US Initial Jobless Claims for last week. Dow Jones futures are currently up 1.24% as investors prefer to remain hopeful of the stimulus package passed by the US Senate, despite the massive spike in the number of Americans claiming unemployment benefits for the first time.
US Initial Jobless Claims rose by more than ten times the previous figure of 281,000, registering at 3,283,000 versus the consensus figure of 1,648,000. While this is causing problems for the US Dollar on several pairs, the Dow Jones does not seem to be affected by the statistics, which clearly show the impact of the coronavirus outbreak on businesses in the United States.
Experts at Goldman Sachs have already predicted that there will be a huge spike in the unemployment figures going forward. The US Initial Jobless Claims may be a forerunner of what is to come on April 3 when the Non-farm Payrolls will be released.
Read our Best Trading Ideas for 2020.
Technical Outlook for Dow Jones
The Dow is looking to break the 21636 resistance (August 1, 2017 low) identified in yesterday’s price analysis for the index. If this move is successful and price breaks to the upside, the next target could be the 22253 resistance, formed by last week’s highs and the August 7, 2017 historical high. The February 5, 2018 low at 23248 is the next in line if the recovery continues.
On the flip side, if the US Initial Jobless Claims numbers start to spook investors on market open, we could see price targeting the July 3, 2017 low at 21078, with a historical low at 20398 lurking underneath.
Don’t miss a beat! Follow us on Telegram and Twitter.
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Eno on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.