Dow Jones
The Dow Jones futures are trading higher, adding 0.98% at 23,889 while the Fear and Greed is giving up two points at 38. Investors attention will be on the corporate earnings and the FOMC meeting later on the week. Investors expect that the Fed will keep the monetary policy unchanged and will focus on any additional monetary measures to support the economy. GDP expected to contract by 3.7% in the first quarter from 2.1% growth in the Q1 2019.
Apple, Microsoft, Facebook, Alphabet and Google will report Q1 earnings during the week and will be a strong test for the sentiment. You can find here the Alphabet (GOOGL) Q1 Earnings Expectations.
Many states are setting plans to reopen businesses. New York will reopen some of the construction and manufacturing sectors with increased distancing and protective equipment available.
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The fear and greed index lost 2 points as the fear over the weekend increased amid the coronavirus outbreak. Falling crude oil prices also weigh on investors sentiment as the first month delivery of WTI crude oil futures is 17.68% lower at $13.95 per barrel.
The Fear and Greed Index was at 13 the previous week while on a month ago it was at 17 at extreme fear level amid the coronavirus sell-off.
Dow Jones is approaching the critical 50-day moving average, which needs vast volumes and positive news from corporate earnings to break above. If the index fails at the 50-day moving average than a correction down to 22,000 can’t be ruled out.
On the upside first resistance for the Dow Jones index stands at 23,826 the high from Friday’s trading session. A break above might test the 50-day moving average at 23,975. Above that level, bulls will be on driver’s seat at least for the short term targeting 24,608 the high from March 11.
On the other side, immediate support seen at 23,414 the low from Friday. Next support will be met at 22,921 the low from April 21. In case of a bearish breakout, the next target is at 21,863 the low from March 31.