The Dow Jones index was closed with U.S. stock markets for thanksgiving in Thursday and futures have been trading flat ahead of the market’s re-opening. The Dow is sitting below the 30,000 level and is also looking for a weekly close above the February pre-crisis highs. This week will likely determine whether stocks go higher or see a correction from here.
The U.S. economic calendar is empty for the day so the market will trade on recent sentiment and the Dow’s price action will depend on investor appetite to hold at record highs into the weekend. Another statement from President Trump on departing the White House may boost investor hopes of a quiet transition if the electors confirm Joe Biden as President when they meet on December 14th.
One sour note yesterday was Wednesday’s rise in U.S. jobless claims with the number of Americans seeking unemployment assistance higher for a second week to 778k. Investment bank JP Morgan has also cut their Q1 GDP expectations to -1% annually and has warned that “This winter will be grim,” in a research note.
Dow Jones Technical Outlook
The Dow Jones is looking to make a weekly close above the February highs and is also trying to take the 30,000 level in order to spur further gains. This will be the story of the day as a sell-off could see a correction unfold. A strong close would see the index advance next week. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.