Dow Jones
The Dow Jones Industrial Average looks set to end the week on a solid footing, despite a slip in consumer sentiment in the US. According to data released on Friday, the preliminary University of Michigan’s Consumer Sentiment index declined unexpectedly to 77.0 from a previous reading of 81.8. This was also lower than the expectation of a reading of 82.1 and represents the lowest number seen since August.
Analysts at Wells Fargo have narrowed down the causes of the decline to a perception of a decreased in financial wellbeing by respondents, on the background of rising coronavirus cases which could spark widespread lockdowns.
However, this did not stop the Dow Jones Industrial Average from rising on the day, as sentiment continued to remain bullish as a result of more coronavirus vaccine news. There are reports that Swissmedic is now performing a rolling view of Moderna’s coronavirus vaccine candidate, the mRNA-1273. Bloomberg reports that markets have already priced in a successful outcome.
The Dow is up 0.7% in mid-NY trading this Friday.
The daily candle is reattempting a push above 29255 after yesterday’s bearish close invalidated the initial breakout attempt. Bulls have been successful at creating an intraday violation of that level. The breakout requires two successful closing penetrations above that level. This would allow the evolving bullish pennant to resolve successfully, with a push towards 29662 initially (11 Nov high), and the 30101 all-time high is also beckoning as an additional target to the north.
On the flip side, a failed breakout at 29255 sets up a possible retracement towards 28746, with 28195 and 27373 looking like potential downside targets if a major selloff ensues. Keep an eye on possible news out of the US election saga next week, with Joe Biden still not officially declared as president-elect.
