Dow Jones and SP 500 futures: Stock market rally
The Dow Jones futures are trading modestly lower and are down by 100 points. There is still a lot of optimism among investors, and the current weakness is nothing more than a pause.
The DJIA index is in battle with the 200-day simple moving average on a daily chart. Yes, the Dow Jones index closed above this important moving average yesterday, but bulls need to make sure that the DJIA index remains above this moving average. If we fail to have another positive strong close today, the Dow Jones price may begin its consolidation once again.
The S&P 500 futures shows that there is a lot of bull power as the S&P 500 index has already scored a higher high this week in comparison to last week's S&P 500 index price. The S&P 500 futures are trading above all the important 50, 100, and 200-day simple moving averages on a weekly time frame, and this means that bulls are in strong control of the price.
Stock Market Rally
The S&P500 index clinched another day of gains and closed higher with a gain of 1.59% gains. Except for the utility sector, all the sectors closed in positive territory. The consumer discretionary and communication sectors led the gains for the S&P 500 stock index.
The Dow Jones index closed higher with a gain of 1.78% or 459 points. The DJIA stocks are backed by bullish momentum, and this helped the 28 stocks score gains, and the only stock fell.
The NASDAQ composite, the tech-heavy index, scored another victory and another record high yesterday. The index has had five consecutive days of gains until. Yesterday, it closed higher by 2.45%.
Author
Naeem Aslam
Zaye Capital Markets
Based in London, Naeem Aslam is the co-founder of CompareBroker.io and is well-known on financial TV with regular contributions on Bloomberg, CNBC, BBC, Fox Business, France24, Sky News, Al Jazeera and many other tier-one media across the globe.
