It is not looking too good for the US markets at this time, as a slew of negative macroeconomic data have limited whatever gains investors are trying to eke out. The Dow Jones is higher this Thursday but has seen the upside severely limited as the number of unemployed Americans seeking first-time benefits shot to 3-month highs.
Initial jobless claims rose to 885K, up from last week’s 853K and also higher than the market’s expectation of 817K. The impact of the rising coronavirus infection and death rates, and the accompanying restrictions on business operations of small and medium-scale businesses, are giving investors cause for concern.
Also serving to cap gains on the Dow Jones is the lack of any tangible sign of progress from the US Congress in passing an additional stimulus, following the rejection of the $908 billion offer last week.
Technical Levels to Watch
The latest attempt by the Dow Jones to break the 30358 resistance level, just above the triangle, was rebuffed by sellers and remains capped by this level. The breakout above this price is needed to take the Dow Jones towards the projected resistance at 31158, in the first instance.
On the flip side, a breakdown of the 30101 support allows the Dow to test the 29842 support. A further breach of this support to the south opens the gates towards 29255, with 28979 and 28195 serving as immediate price targets to the south.
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Dow Jones Daily Chart
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