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Stocks Trade Higher, Bitcoin Trades Above $18K

Stocks Trade Higher, Bitcoin Trades Above $18K

Investors are feeling optimistic today and believe that the potential coronavirus vaccine can end the pandemic. Pfizer and Moderna have both produced their phase-three trial results, and have applied for the emergency use of their vaccine. The hope is that we will soon see the coronavirus vaccine available across the world. However, the global economy’s immediate challenge is to get through current winter conditions, which have pushed the coronavirus numbers higher. 

The Asian stock market started the week on a positive note, but airline stocks took some beating. The ASX 200 index closed with a gain of 0.36%. The Korean Kospi index advanced 1.92%, while the Nikkei index declined 0.42%. The Shanghai index increased by 1.03%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market breadth lost its momentum. 83% of the Dow Jones stocks traded above their 200-day moving average. This is a -4% change from the day before.  

The S&P 500 stock breadth maintained its bullish strength direction. 86% of the shares traded above their 200-day moving average. A +1% change from the day before.  

Dow Jones Futures Today

The Dow Jones futures are trading lower by 120 points today. In terms of economic data, investors will be looking at the Flash Manufacturing PMI number. The forecast for the data is 52.5, while the previous reading was at 53.4 

The Dow Jones futures have started the week on a positive note, and it seems like that the Dow price may be formed a new higher low. As long as the previous one remain in place, it is likely that the Dow Jones will continue to move higher. As for the overall trend, bulls are certainly in control of the price as the Dow price is trading above the 50, 100 and 200-day SMA on the daily time frame. The near term resistance is at 29,993, and the support is at 29,122. 

The S&P 500 futures, which represent the broader stock market, are trying to recover some of their losses from the past week. Remember, the S&P 500 not only closed in negative territory, but  also traded with the highs and lows of the week before that. Thus, on the daily frame, it may appear that the price has started to stall. On the daily frame, it does appear that a higher low may be formed, and if this higher low remains in place, the path of the least resistance is skewed to the upside. Overall, bulls control the price as the price is trading above the 50, 100, and 200-day simple moving averages on the daily time frame. The resistance is at an all-time high, which is at 3,667, and the support is at 3,542. 

Stock Market Rally

The S&P 500 stock index closed lower on Friday; the index fell by 0.68%. The information technology sector led the index lower- 10 out of 11 sectors closed lower. 

The Dow index also closed lower on Friday; the Dow stocks moved the index lower by 0.75%. Twenty-five shares declined while five shares closed higher. 

The NASDAQ composite, a tech-savvy index, closed with a loss of 0.42%. 

S&P 500 Leaders and Laggards: CF industries and Viatris 

CF industries stock contributed the biggest gain, soaring 42%. Viatris Inc was the largest drag; it fell by 5.41 %. The S&P 500 stock index is up 8.8% so far this year.

Dow Jones Leaders and Laggards: Boeing and Cisco 

3M Co provided the biggest help for the Dow Jones; it advanced by 0.75%, while Salesforce was the largest decliner, falling by 2.5%. 

Bitcoin 

The crypto king has maintained its strength, and it is trading above the critical level of 18K. The door is still wide open for the cryptocurrency king to continue to move higher and challenge its all-time high.