Market Update: US30 Ready to Push Higher?

June 7, 2021
by Joseph Jeffriess, Market Analyst

Hi traders, today we’re taking a look at the daily Dow price chart as buyers look to have shaken off a soft start. Could we see a continuation of Friday’s strong buying?

Friday’s jobs data came in mixed with average earnings and unemployment beating forecasts, while payrolls missed. This didn’t dampen risk buying spirits as the USD was dumped and traders moved back into risk assets. Stocks benefited from the move as we saw the US30 that follows the Dow Jones Index add 0.48% to the close.

Friday’s move continued a break above resistance which maintains the current fast trend we have been watching develop since the higher low set in May. Friday’s break is a positive and set off new buyer momentum. Today’s move, for now, has shown support from previous resistance. This sign is liked by technical analysts as it shows price has now moved resistance into a point of demand. Kind in mind we only have one test at the moment, which is today’s bar.

Today’s bar has fought back from early weakness to now have a positive lead. That’s another nice buyer signal showing us buyers have an interest. In today’s US session, we would like to see momentum carry forward with another positive close expanding on Friday’s session. This could continue to show us that the current fast trend continues to grow.

Daily US30

34,831 we see the first point of possible resistance. If things really get going the record could be the next. If today’s session collapses back to the downside we would be warry and want to see more price action to confirm that the fast trend remains in play.

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