Stock Market Today
The U.S. Treasury Secretary, Steven Mnuchin downplayed the prospects of having a stimulus before the U.S. election. This has made investors wary because coronavirus cases are increasing and the reality is that we may not see a coronavirus vaccine for the public until the first quarter of next year. This makes it even more likely that we may see further strife for the U.S. economy.
The Asian stock market closed sharply lower today. The Shanghai index declined 0.19%. The Korean Kospi stock index also moved lower by 0.81%, while the Nikkei index declined 0.51%. The Australian ASX 200 advanced 0.50%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth maintained its strength yesterday. 77% of the Dow Jones stocks traded above their 200-day moving average.
The S&P 500 stock breadth continued to gain more strength. 73% of the shares traded above their 200-day moving average. This is a change of +1% from a day earlier.
Dow Jones Futures Today
The Dow Jones futures are trading lower by 53 points. In terms of economic data, today, it is all about the U.S. Unemployment Claims data and sadly the expectations are that this number is going to show another weak reading. The fact that the U.S. lawmakers aren’t helping the economy through their fiscal policy is not helping to bolster the economy.
The Dow Jones futures have posted two consecutive days of losses. On the daily time frame, the price is still looking bullish as the Dow is trading above the 50, 100 and 200-day SMA.
However, on an intra-day time frame, such as the 4-hour time frame, the bulls are likely to lose some control if the price of the Dow Jones drops below the 50-day SMA. The immediate support is at 28,296, and the resistance level is at 28,676. The RSI on the 4-hour time frame is moving towards the oversold zone and it is currently at 45.3.
The S&P 500 index, which represents the broader stock market, has formed a bearish candle on the weekly time frame. The price is trading well away from this week’s high, and it is likely that we close the week in negative territory.
As for the daily time frame, the S&P 500 is still trading above the 50, 100 and 200-day SMA, which confirms that the bulls are in control of the price. The near-term support is at 3396, and the resistance is at 3534.
Stock Market Rally
The S&P 500 stock index declined for another day yesterday, the index lost 0.49%. The consumer discretionary sector led the index lower, and 8 sectors out of 11 closed lower.
The Dow index remain under selling pressure yesterday; the Dow stocks moved the index lower by 0.43%. 20 shares of the Dow fell, and 10 shares closed higher.
The NASDAQ composite, a tech-savvy index, moved lower by 0.59% yesterday.
S&P 500 Leaders and Laggards: Concho Resources and Wells Fargo
Concho Resources stock contributed the biggest gain, soaring 10.6%. Wells Fargo stock was the largest drag; it fell by 5.64%. The S&P 500 stock index is up 8.2% so far this year.
Dow Jones Leaders and Laggards: Honeywell and UnitedHealth
Honeywell stock advance higher by 1.5% and was the biggest mover for the Dow, while UnitedHealth stock declined 2.85%, the biggest drag for Dow Jones Industrial Average index.