The Dow Jones Industrial Average has spiked strongly this Monday after the FDA approved the Johnson & Johnson coronavirus vaccine, paving the way for it to be available for public use in the next 1-2 days.
Also aiding the strong bullish move on the Dow was the retreat in bond market yields, which fell 6.93% on Friday and is down 0.11% this Monday. Various averages on the Dow were up; bank stocks, materials and cyclical energy shares all rose this Monday. Stocks listed in travel and hospitality saw significant gains, with airline stocks (AA and Delta) as well as cruise liner stocks also gaining on the day.
The major news for the Dow was Saturday’s passage of the $1.9trillion coronavirus stimulus package by the US Congress, paving the way for the deployment of much-needed stimulus cash to individuals, companies, and sectors of the economy in dire need of a shot in the arm.
The Dow is up 2.2% as of the time of writing.
Technical Levels to Watch
Today’s surge has negated the breakdown of 31282 and allows 31739 to come into focus once more as an upside target. A breakout from this price resistance allows bulls to target the all-time high at 32084. 32505 (100% Fibonacci extension from the swing motion of 14 May to 2 September 2020) remains a potential target for bulls.
On the other hand, rejection and pullback from 31739 bring the 31228 price mark back into focus. 30585 and 30358 remains additional support targets to the south.
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Dow Jones Daily Chart
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