The Dow Jones gives up 189 points in early trading after the new coronavirus outbreak in South Korea, China and Germany increased fear that maybe it is too early for the reopening of economies. Wall Street ended higher on Friday as traders ignored the gloomy jobs report and focused on the planned economic reopening.
The U.S. Labor Department reported that the U.S. unemployment rate jumped to 14.7% in April from 4.4% as almost 20.5 million nonfarm payrolls were lost for the month. The unemployment rate hit the highest level since World War II.
Dow Jones dragged down by Boeing Co., which is 3.46% lower at $128.82, American Express is 3.99% lower at $85.93 while Travelers Cos. Inc. is 2.42% lower at 94.99.
Dow Jones Industrial is up over 32% since the March lows as investors jumped into risky assets for bottom fishing after the coronavirus sell-off.
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Fear and Greed Index Stabilize At 44
The fear and greed index lost one point since the opening after Wall Street started lower. The fear and greed index trades at the same level as the previous week while it is two points higher since April 12. The CBOE Volatility Index (VIX) is 7.61% higher today at 30.12.
Dow Jones Support and Resistance
Dow Jones is 1.01% lower at 24,091 as the recent rally from March lows stalled at 24,700. The short term picture remains positive despite today’s pullback, but the longer-term outlook is bearish as long as the index trades below the 100-day moving average.
On the downside, first support for Dow Jones Industrial Average is at 24,070 the daily low. Next strong support for the index will be met at 23,626 the low from May 6. A break below will cancel the positive momentum and might open the way for a test of 23,091 the 50-day moving average.
On the flip side, initial resistance for the Dow Jones stands at 24,256 the daily top. A break above might test 24,583 the high from April 30. The next supply zone for the longer term is at 25,062 the high from March 10.
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