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Dow Futures Pay Attention To U.S. Initial Jobless Claims Data

US Weekly Jobless Claims

The Dow futures, along with the S&P 500 Futures, are paying attention to the upcoming US weekly initial and continuing jobless claims data. The expectations are that they have fallen to 1.38 million from 1.43 million. Continuing claims are likely to gain more attention and the forecast is that we may see another drop here as well. The forecast is for 18.75 million.

If we see a drop in the initial and continuing claims data today, we are likely to see the US equity market to find strength. Perhaps, this could be the catalyst that pushes the S&P 500, and the Dow Jones, to close the week in positive territory.

Here is more on this:

Market Breadth: DJIA Index And S&P500 Index

The stock market’s breadth shows no major shift in bull and bear among day traders. 37% of the Dow Jones stocks traded above their 200-day simple moving average SMA–the same number as the day earlier.

The S&P 500 index also confirmed no chance in sentiment. 40% of the index stocks traded above their 200-day SMA.

Dow Jones And S&P 500 Futures Today

The Dow futures are trading slightly lower today as traders are hesitating to put bigger bets ahead of the US initial jobless claims data.

The Dow futures are still trying to move above the 200-day SMA on a daily time frame. The Dow price has tested this average again today but failed so far which confirms weakness. However, the DJIA futures are still trading above the 50 and 100-day SMA, and as long as they continue to trade above them, the odds are stack in favor of bull rally.

The S&P 500 futures, which are a better representation of the overall US stock market, show traders do not have much to worry about the bull run. The S&P 500 index price is trading above all the critical moving averages: 50, 100 and 200-day SMA on a daily and weekly time frame.

DJ30 Daily Chart

DJ30 Daily Chart


Global coronavirus cases have surpassed the 12 million mark and new cases are flaring up in countries that had more reasonable control of the disease as their economies have begun to open up again. US coronavirus cases soared by 2% outpacing the 7-day average and the death toll has started to rise as well.

Dow Futures Pay Attention To U.S. Initial Jobless Claims Data

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