- Summary:
- The Dow Jones index is marching to $35,000 as the fear and greed index declines to 43. We explain what to expect next in the near term
The Dow Jones index is hovering near its highest level on record as investors remain optimistic about corporate earnings and the upcoming infrastructure package. The index is trading at $34,290, which is about 3.3% above the lowest level this week.
US stocks rally. The Dow Jones index is rallying after a relatively positive note by FactSet. In a report, the data analytics company said that there was a record number of companies issuing positive earnings-per-share and revenue guidance for the second quarter.
103 companies in the S&P 500 have issued a positive earnings outlook while 85 firms have issued positive revenue guidance. This is a sign that businesses in the country are doing well. As such, investors believe that the strong earnings will help to offset higher interest rates.
The Dow Jones is also rising as investors react to the relatively strong economic data. On Tuesday, data from the US showed that US home prices surged in April while consumer confidence rose in June. Also, United Airlines made a big order from Boeing and Airbus, which is a sign of confidence that the economy will stage a strong recovery.
Meanwhile, the fear and greed index is still in the fear zone. The index declined to 43, where it has been in the past few weeks. This trend is mostly because of extreme greed in the safe haven, stock price strength, and stock price breadth sub-indexes.
Dow Jones technical analysis
The Dow Jones index has been in a strong upward trend in the past few days. The index is above the 50-day and 25-day exponential moving averages. It is also between the ascending channel that is shown in black. The two lines of the MACD have moved above the neutral level.
Therefore, the index will likely keep rising as bulls target the next key resistance level at $35,000. On the flip side, a move below $33,500 will invalidate this prediction.
DJIA chart
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