Quadruple-witching Friday: Dow Jones Futures Higher

The Dow Jones Industrial Average ended yesterday lower after the index rejected twice at the 200-day moving average. The futures today point to a positive opening for another attempt at the critical resistance. Sentiment has improved today after news that China plans to accelerate the purchases of U.S. agricultural products as per the agreement in phase one deal reached in January. Until April, China’s agriculture imports from the U.S. have reached almost 13% of the goal.
In premarket, travel and entertainment companies trade higher in premarket on optimism about a fast recovery after the easing of the lockdown.

However, a rising number of new coronavirus cases in some states and Beijing keep the risk alive, and the investors cautious about risky assets after the recent rally.

Today is a Quadruple-witching Friday may add to volatility in the stock markets. Stock index futures and Stock index options, and stock options and single stock futures contracts expire today. There are abound $1.8 trillion of S&P 500 options in expiration today.

Dow Jones futures are 1.02% higher at 26,163. The S&P 500 futures are 0.93% higher at 3,126, while Nasdaq futures are 0.85% higher at 10,068.

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Fear and Greed Index Returns to Neutral

The fear and greed index added two points and now is at 51, pointing to a neutral emotion in markets today. The index rebounded after a slide to 49 the previous week.    

The put/call ratio in CBOE is at 0.60 while the CBOE Volatility Index (VIX) or fear index ended yesterday 6.18% lower at 31.40.  

Dow Jones Levels to Watch

Dow Jones ended 0.15% lower at 26,080 marking the third consecutive session with losses. The rejection at the 200-day moving average gives the upper hand to sellers. The index look trapped between the 100 and 200-day moving average, as investors are waiting for a catalyst to initiate the next trading position.  

On the downside, first support for Dow Jones index is at 25,848 the low from yesterday. Next support for the Dow Jones will be met at 24,967 the 100-day moving average. A break below 24,967 might open the way for a test of 24,671 the 50-day moving average.      

On the other hand, initial resistance for the Dow Jones index stands at 26,154 the high from yesterday. A move above 26,154 might open the way for a test of 26,314 the 200-day moving average. If the bulls continue then the next hurdle for the Dow Jones index is at 27,368 the high from June 10. 

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