The Dow Jones is extending the losses in the futures market ahead of key corporate earnings from companies like Intuit, Ross Stores, and NetEase. The index is down by more than 100 points a day after it fell by more than 300 points.
Other global indices are in the red today with the MSCI World Index falling by almost 0.60%. In the United States, the S&P 500 and Nasdaq futures are down by more than 0.30%.
A major concern is that the situation in the US is getting out of control. The country confirmed more than 170k cases yesterday across all states. As such, investors have started to place their bets that lockdowns similar to those implemented in the first quarter could be done. In fact, some states like New York and California have done that.
Later today, the Dow Jones will react to earnings by companies like Intuit and Workday. These numbers will come a day after we received data from Walmart, Nvidia, and Target.
Dow Jones technical outlook
On the 30-minute chart, we see that the Dow Jones found strong resistance above $30,000 this week. It formed a double top and then started darting lower and is now 2% below the high. The price has also managed to move below the bearish flag pattern that formed earlier today. Therefore, I predict that bears will likely push the index to the support at $29,000 either today or tomorrow. The stop for this trade is at today’s high of $29,532.
Dow Jones 30-minute chart