December 9, 2020

Stock Ready To Move Higher

Stock Ready To Move Higher

The crisis recovery talks will continue today between the British Prime Minister, Boris Johnson, and the EU’s, Ursula von der Leyen. The reaction in the market is still very mixed and there is not much clarity yet as to whether there will be a deal on Brexit or not. Looking at the Sterling’s price, it becomes increasingly clear that traders are on the edge as every headline is bringing mammoth spikes. Investors are hopeful that the big gaps, with respect to a level playfield, will be filled soon.

Stimulus talks seem to be making some progress as the US Treasury Secretary, Steven Mnuchin, has made a new stimulus proposal. The new stimulus package is for $916 billion and it seems that it has had a positive impact on the House Speaker, Nancy Pelosi, and Majority Leader, Chuck Schumer as they have labelled it as progress.

On the Covid front, the UK started the process of vaccinations yesterday, and nearly 800,000 vaccine doses have been delivered from the manufacturing site in Belgium.

The Asian stock market staged a rally today  the markets. The Nikkei index closed with a gain of 1.23%. The Korean Kospi index advanced 2.02%, while the HSI index jumped higher by 0.55%. The Shanghai index fell by 1.12%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market breadth is holding on to its strength. 93% of the Dow Jones stocks traded above their 200-day moving average.

The S&P 500 stock breadth is maintaining its bullish momentum. 91% of the shares traded above their 200-day moving average.

Dow Jones Futures Today

The Dow Jones futures are trading higher by 68 points today. In terms of economic data, investors will be looking at the crude oil inventory data. The forecast is for -0.9M, while the previous reading was at -0.7M. 

The Dow Jones futures are struggling to maintain their gains today. The Dow price had a stab at an all-time high yesterday but the price failed to break through that. On the 30-minute time frame, it seems that bulls are picking up more control of the price as the 50-day SMA has crossed above the 100-day SMA.

The S&P 500 futures, which represent the broader stock market, have gone above the last week high. This confirms that bulls are not afraid, and a break of this will open the door towards the all-time high. Looking at the daily time frame, it seems like the bull momentum has picked up some steam as yesterday’s price move was greater than the past two days. In addition to this, the S&P 500 futures are also 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 3,548. 

Stock Market Rally

The S&P 500 stock index closed in positive territory yesterday; the index gained 0.28%. The energy sector led the index higher- 6 out of 11 sectors closed higher. 

The Dow index also closed higher yesterday; the Dow stocks moved the index higher by 1.12%. Twenty-three shares advanced while seven shares closed lower. 

The NASDAQ composite, a tech-savvy index, closed higher by 0.31 yesterday. 

S&P 500 Leaders and Laggards: Equifax and AutoZone 

Equifax stock contributed the biggest gain, soaring 7.84%. AutoZone Corp was the largest drag; it fell by 5.29%. The S&P 500 stock index is up 11% so far this year.

Dow Jones Leaders and Laggards: J&J and Boeing  

J&J provided the biggest help for the Dow Jones; it advanced by 1.73%, while Boeing was the largest decliner, it fell by 0.67%. 

Bitcoin 

The crypto king is consolidating near its all-time high. Traders are waiting for Bitcoin to break above the all-time high and a break of this will open the door towards the next level of 50K.