The Dow Jones Industrial Average has opened higher this Thursday after the US Congress and VP Mike Pence certified the US election results that declared Joe Biden as the 46th US President. Also, a win for the Democratic candidates in the Georgia runoff polls ensures that the Democrats take full control of the US Congress with a majority.
Investors also applauded the latest initial jobless claims figure, which showed a drop from 790K to 737K, ahead of tomorrow’s Non-Farm Payrolls report. Seasonally adjusted insured unemployment (continuous jobless claims) for the week ended December 26 came in at 5,072,000, which was a drop from the previous week’s revised number of 5,198,000 (a downward revision).
These numbers sent the Dow Jones Index to a new record high at 31058.
The Dow is looking to build on yesterday’s breakout closing penetration above 30358, with a push to the projected target of 31158 (78.6% Fibonacci extension). Beyond this point, 32505 (100% Fibonacci extension) could be another target to the north as bulls keep chasing new records.
On the flip side, tapering of the recent upside moves requires bullish exhaustion, with price levels below 30,000 only possible if there is a drop below the 30101 price level. This move brings 29842 into the picture as a downside target, with 29255 and 28979 also lining up as possible targets to the south.
