US futures trade higher, Fed meeting in focus

28 Jul 2020, 17:45 · Views 580

The US stock market may get an upward push if US consumer data beats the forecast. The forecast is 94, while the previous reading came in at 98.1. This is the last piece of valuable information that the Federal reserve will receive before their FOMC rate decision, which is due tomorrow.

Dow Index And SP500 Index: Market Breadth

The stock market’s breadth confirms that the bulls have lost a lot of ground, but the bulls have not yet lost the control. 50% of the Dow Jones stocks have traded above their 200-day moving average.

The S&P 500 stocks do display better bull strength. 53% of the shares are trading above their 200-day moving average.

Dow Jones And S&P 500 Futures Today

The Dow Jones futures are trading higher by 50 points

The Dow Jones futures are still above the 50, 100, and 200-day moving averages on a daily time frame. Yesterday’s price action confirms that investors believe in the coronavirus stock market rally. The 50-day moving average has firmly crossed above the 200-day moving average, which is positive.

The Dow futures on the weekly chart are trading within the previous week’s highs and lows. The DJ30 index price must stay above the 50, 100, and 200-week smooth moving average to continue this bull trend.

The S&P 500 index is a better representation of the US stock market by maintaining its upward trend. The S&P 500 index price is holding on to its gains, but it is trading below last week’s high. For this bull trend to continue, we need the S&P 500 to break above the previous week’s high of $3,284.

Stock Market Rally

The S&P500 index had a reasonable session yesterday as the index closed near a session high. The trading volume for the S&P 500 index was on the lighter side compared to the recent trend. The SPX index closed recorded gains of 0.74%, and only two sectors out of eleven closed in negative territory.

The Dow Jones index soared 114 points yesterday and closed higher by 0.43%. Seventeen stocks soared, and thirteen declined. Apple was the biggest gainer for the Dow Jones index while Boeing kept a lid on an upside move.

The NASDAQ composite, a tech-savvy index, also advanced 1.82% yesterday.

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