Global Stock Market Today
The global stock market has started the week on a positive note. Investors are optimistic that the coronavirus vaccine trial by AstraZeneca has started once again. We are likely to see more upside in the hospitality and tourism sector.
Stocks in Asia had a solid day today. The Shanghai index advanced 0.32%. The HSI stock index also moved higher by 0.60%, while the Korean Kospi soared 1.30%. The Japanese Nikkei Index rose 0.65%.
In the forex market, we are seeing the dollar index moving off its lows, which is positive for the dollar. Traders are likely to keep a close eye on the Brexit negotiations, and the hope is that both sides resume their negotiations as no-deal Brexit is not good for any side.
Dow Index and S&P500 Index: Market Breadth
The stock market breadth for the Dow Jones took further hit on Friday. 67% of the Dow Jones stocks traded above their 200-day moving average yesterday. This is a change of -2% from a day earlier,
The S&P 500 stock breadth also had a little luck. 57% of the shares traded above their 200-day moving average yesterday. This represents a change of +0% from a day earlier.
Dow Jones and S&P 500 Futures Today
The Dow Jones futures are trading higher by 340 points. Given the fact that European futures are also trading higher today, it is likely that we may not see any reversal for the U.S. futures until the cash open.
The Dow Jones futures have respected their 50-day SMA on a daily time frame. This is remarkable for the Dow Jones index because it has been the weakest index since the coronavirus stock market crash. Investors are hoping for the bull trend to continue because the price is trading above the 100 and 200-day SMA. The next meaningful resistance for the Dow Jones is 28402, which is the high of Sept 9th.
The S&P 500 futures, a wider representation of the U.S. equity market, has finally broken above the 50-day SMA on a daily frame. As long as the price stays above the previous week’s low, which is at 3295, the chances are that the bulls are likely to remain in power. In terms of resistance, it is the previous week high that traders are looking at and it is at 3446. The S&P 500 index is trading above the 100 and 200-day SMA, another bullish signal.
Stock Market Rally
The S&P 500 stock index was able to close in positive territory on Friday, it advanced by 0.05%. The industrial technology sector led the index higher, and seven out of eleven sectors closed higher.
Huntington Ingalls stock contributed the biggest gain, soaring 6.94%. NortonLifeLock stock was the largest drag; it fell by 5.96%. The S&P 500 stock index is up 7.8% during this quarter.
The Dow index soared 139 points on Friday, and the Dow stocks moved the index higher by 0.48%. 22 stocks of the Dow Jones Index increased in value, and 8 shares of the Dow index moved lower. Caterpillar stock advanced higher by 2.65% and was the biggest mover for the Dow, while Salesforce stock dropped 1.9%, the biggest drag for Dow Jones industrial average index.
The NASDAQ composite, a tech-savvy index, declined by 0.60 on Friday.