dow jones

Dow Jones Regains The 50-Day SMA – What’s Next?

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Dow Jones futures point to a slightly lower opening after yesterday’s strong rebound. Dow Jones ended yesterday 1.51% higher at 27,584 and managed to return above the 50-day moving average. 

All eyes would be today on the first out of three debates between Biden and Trump. Many analysts believe that a good performance from Joe Biden today might put Donald Trump in the corner as the Democratic nominee is leading in latest polls. 

Coronavirus Deaths Surpassed One Million

As the coronavirus death toll surpassed the one million mark today, investors are looking for a fresh monetary and fiscal stimulus, as the economic recovery has lost momentum. Democrats are planning a $2.2 new trillion package below the $3 trillion package proposed earlier.

The Non-Farm payroll report on Friday would give a clear picture of the state of the employment and the U.S. economic recovery. Analysts expect that the U.S. economy created 800,000 new jobs in September. 

Boeing was the top performer yesterday followed by the banking sector. JPMorgan Chase and American Express finished over 2.5% higher recovering some of previous week heavy losses, while Apple was 2.39% higher at 114.96. 

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Dow Jones Technical Analysis    

Dow Jones index correction from the September 3 highs stalled on Thursday at the 100-day moving average and managed to bounce strongly breaking above the 50-day moving average yesterday, showing that the bulls would not give up without a fight.

Resistance for the Dow Jones index stands at 27,722 the high from yesterday. More sellers would emerge at 27,974 the top from September 18. A break above would open the way for a test of the recent highs at 29,216.

On the contrary, support for the Dow Jones would provide the 50-day moving average at 27,546. The low from yesterday would be the next target for bears, while a break below would challenge the 100-day moving average at 26,556.

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