The Dow Jones Industrial Average is trading higher today, adding 0.35% as at the time of writing as investors look towards the speech of incoming US President Joe Biden that will detail his proposed stimulus plan.
The incoming US President will provide details on his expanded fiscal stimulus plans during Friday’s Asian session. Biden is expected to unveil a stimulus bill worth more than $2trillion. The expectations of an expanded stimulus by the incoming president have enabled investors to overcome the sharp jump in initial jobless claims, setting the tone for the tapered bullish move on the Dow.
Technical Outlook for Dow Jones
Today’s upside move has put the resistance at 31265 under pressure. A break of this level could lead to new record highs for the Dow Jones, with the next upside target at 32505 (100% Fibonacci extension level) coming within the buyers’ crosshairs.
On the flip side, a rejection and pullback at the 31265 resistance could bring 30358 into focus once more. A retest and breakdown of this area would also open the door towards the 29842 and 28979 support targets. This outlook would temporarily suspend the expected upside move from the bullish pennant pattern.
Dow Jones Daily Chart