Dow Futures Pointing Towards Negative Opening – Market Still Under Pressure
Feb, 09th 12:14
Dow futures were pointing to a negative opening on Friday. This week has been a rough one for global stocks, their worst decline since 2011, with the selloff in the last U.S. session causing the Dow to chalk up its third loss of more than 500 points in the last five days, sending the blue-chip index on track to register its worst weekly decline since October 2008.
The yield on 10-year Treasury notes on Friday crept back towards a four-year high on Friday after the U.S. Congress passed a roughly $300 billion spending bill to end the government shutdown.
The U.S. Congress managed to pass a two-year budget agreement early Friday that ended a brief partial government shutdown that began at midnight when lawmakers missed a funding deadline.
The agreement will boost federal spending by almost $300 billion and suspend the debt ceiling for a year and was passed in a 240-186 House vote following an earlier approval by the Senate (71-28).
On the technical charts, Dow30 is trading in the negative zone and near the lower band of the Bollinger bands. The market is trading below all the moving averages (9day, 20 day, 50 day, 100 day and 200 day). The RSI is at 35.42 and the MACD is below the signal line.
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