The Dow Jones Industrial Average has hit a new record high after the report by the US Food and Drug Administration gave a pass mark to the coronavirus vaccine candidate developed by Johnson & Johnson. Also, the remarks by Fed Chair Jerome Powell in his Congress testimony have lifted the markets.
US Fed Chair Jerome Powell had said in his testimony that the US economy was still far from recovery and that the Fed was prepared to continue to offer whatever stimulus was needed to aid recovery. He also mentioned that inflation risks were to the downside, which effectively ruled out an earlier tightening cycle for interest rates or a faster rollback of the asset purchase program of the Fed.
The US markets applauded both sets of news and this has led to a surge to a new record high for the Dow Jones Industrial Average. The index is presently up by 1.00% as of the time of writing.
Technical Outlook for Dow Jones
The Dow Jones Industrial Average has violated the previous all-time high at 31733 but needs confirmation to confirm the break of this level. If there is a breakout confirmation via a double successive candle close above 31733, or a 3% closing penetration to the upside, then the price could be poised for a move towards the 100% Fibonacci extension at 32505.
On the flip side, a failure of confirmation of the breakout move could allow for a pullback which retests the 31282 support, with 30585 and 30358 also lining up as additional support to the south.
Dow Jones Daily Chart