Stock Market »The Dow Jones rises after Friday’s sell-off

The Dow Jones rises after Friday’s sell-off

Futures contracts on the Dow Jones index rise after the bloodbath in the stock market on Friday following the discovery of the new variant of COVID, the Omicron.

The Dow Jones experienced its biggest one-day sell-off in more than a year as investors feared the new strain of COVID could derail the economic recovery. Risk assets tumbled and safe-haven stocks soared.

Today, the mood is improving, as a doctor who has treated cases of Omicron said that the symptoms so far have been mild.

The Covid headlines and a speech by Fed Chairman Powell could spark moves in the Dow Jones.

What’s Next for the Dow Jones?

The Dow Jones sell-off on Friday saw it dip below the SMA-50 moving average before finding support at 34690. The bounce resumed at 35085 and is approaching the SMA-50 at 35315. The RSI is heading well up and remains bearish. territory.

Any significant recovery should resume the SMA-50 moving average to bring the August high at 35620 into play.

The rejection of the SMA-50 moving average and a move below 34690 could see sellers gain ground towards the SMA-200 moving average at 34440 opening the door to 34095 the October low and 33530 the September low.

By Fiona Cincotta, Forex.com » Official site

Disclaimer: The information and opinions contained in this report are provided for general information only and do not constitute an offer or solicitation regarding the purchase or sale of currency exchange contracts or CFDs. Although the information contained in this document has been taken from sources considered reliable, the author does not guarantee its accuracy or completeness, and assumes no responsibility for any direct, indirect or consequential damages that may result from the fact that someone trusts such information.