Dow Jones
The Dow Jones futures extend loses to almost 100 points as investors turn their back to risky assets amid the rising number of coronavirus cases in some U.S. states and Tokyo overnight. World Health Organization (WHO) Director Tedros said the pandemic is getting worse around the world as a record of 227,000 new coronavirus cases were reported globally yesterday. Meanwhile, Hong Kong announced that it is closing schools.
The United States Producer Price Index (PPI) came in at -0.2% below the expectations of 0.4% in June; the yearly reading PPI came in at -0.8% also below the forecasts of -0.2%. The Producer Price Index excluding Food & Energy came in at -0.3%, below the expectations of 0.1%.
Chinese stocks retreated today after eight straight days of gains as some state-backed funds in China took some profits off the table.
Dow Jones futures are 0.59% lower at 25,418. The S&P 500 futures are 0.48% lower at 3,127, while Nasdaq futures are 0.26% lower at 10,699.
The fear and greed index stands at 53 points, keeping a slightly greedy mood despite the recent rising in new infections. One week ago, the index was at 50. A drop below the 50-mark will signal selling pressures as the fear would be in control.
The put/call ratio in CBOE is at 0.43 rebounding from the two years low while the CBOE Volatility Index (VIX) or fear index ended yesterday 7.30% higher at 30.13.
Dow Jones ended 1.39% lower at 25,706 as the recent rebound from the March lows stalled at the 200-day moving average. The long term outlook is bearish for the index, and only a close above the 200-day moving average would give the upper hand to the bulls.
Looking south, the first support for Dow Jones index is at 25,523 the low from yesterday’s trading session. Next support for the Dow index will be met at 25,265 the 50-day moving average. A break below 25,265 might challenge the 25,000 mark, which is the low from June 26.
On the flip side, the immediate resistance for the Dow Jones Industrial Average stands at 26,103 the top from yesterday. A move above 26,103 might open the way for a test of 26,233 the 200-day moving average. If the bulls continue then the next supply zone for the Dow Jones is at 27,400 the high from June 10.
