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Dow Jones, S&P 500 and Nasdaq remain in a bull market supported by COVID-19 vaccine news

Dow Jones, S&P 500 and Nasdaq remain in a bull market supported by COVID-19 vaccine news

The US stock market is still supported by upbeat over the prospect of a divided Congress, Covid vaccine news and less risk of major policy changes. Pfizer and BioNTech announced that their jointly developed COVID-19 vaccine which is effective in more than 90% of the patients.

Joe Biden won the presidential election and become the 46th president of the United States. Donald Trump said there is evidence of fraud in several of the deciding states that will be presented to the courts but this will not change anything according to political analysts.

For the week, the Dow Jones advanced 4%, the S&P 500 2.2% while the Nasdaq weakened 0.6% as investors booked profits in technology stocks.

The US reported the October employment situation before two weeks, the country added 638K new jobs which is slightly better than anticipated. The unemployment rate fell to 6.9% from 7.9 as the labor force participation rate advanced to 61.7% from 61.4%.

The attention of investors is focused currently on the US stimulus aid package negotiations and on the situation with COVID-19 pandemic. COVID-19 cases in the US continue to rise while Europe is not faring any better with this pandemic.

The US reported over 180K new cases in one day and the pandemic pushed U.S. hospitals to the brink of capacity. This is certainly not good for the economy and this could add pressure to the stock market.

S&P 500 up 2.2% on a weekly basis

For the week, S&P 500 (SPX) booked a 2.2% increase and closed at 3,585 points.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are 3,500 and 3,400 points, 3,600 and 3,700 points represent the resistance levels. If the price jumps above 3,600 points it would be a buy signal for the S&P 500 and we have the open way to 3,650 points.

Rising above 3,700 points supports the continuation of the bullish trend and the next price target could be located around 3,800. On the other side, if the price falls below 3,500 points it would be a “sell” signal and we have the open way to 3,400 points.

DJIA up  4% on a weekly basis

For the week, the Dow Jones Industrial Average (DJIA) advanced 4% and closed at 29,479 points.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are 29,000 and 28,000 points, 30,000 and 31,000 points represent the resistance levels. If the price jumps above 30,000 points it would be a buy signal for Dow Jones Industrial Average (DJIA) and we have the open way to 30,500 points.

Rising above 30,500 points supports the continuation of the bullish trend and the next price target could be located around 31,000. On the other side, if the price falls below 28,000 points it would be a strong “sell” signal and we have the open way to 26,000 points.

Nasdaq Composite down 0.6% on a weekly basis

 The Nasdaq Composite (COMP) weakened 0.6% on a weekly basis as investors booked profits in technology stocks.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are 11,500, 11,000 and 10,500 points, 12,000 and 12,500 points represent the resistance levels. If the price jumps above 12,000 points it would be a buy signal for Nasdaq Composite and we have the open way to 12,200 points.

Rising above 12,500 points supports the continuation of the bullish trend and the next price target could be located around 13,000. On the other side, if the price falls below 11,000 points it would be a strong “sell” signal and we have the open way to 10,500 points.

Summary

The US stock market is still supported by upbeat over the prospect of a divided Congress, Covid vaccine news and less risk of major policy changes. Pfizer and BioNTech announced that their jointly developed COVID-19 vaccine which is effective in more than 90% of the patients. For the week, the Dow Jones advanced 4%, the S&P 500 2.2% while the Nasdaq weakened 0.6% as investors booked profits in technology stocks.

The post Dow Jones, S&P 500 and Nasdaq remain in a bull market supported by COVID-19 vaccine news appeared first on Invezz.

Source: INVEZZ

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