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Dow Jones, S&P 500 and Nasdaq weakened on a weekly basis but remain in a bull market

By: Invezz
Dow Jones, S&P 500 and Nasdaq weakened on a weekly basis but remain in a bull market

The Dow Jones Industrial Average, S&P 500 and the Nasdaq Composite weakened on a weekly basis and the focus in the US shifts to the upcoming presidential election on November 3. The pandemic pushed U.S. hospitals to the brink of capacity as coronavirus cases surpassed 9 million and concerns amid the ongoing pandemic continue to dominate the financial markets.

The US reported over 99K new cases in the last 24 hours, although President Donald Trump refuses to pause the economic activity, which is positive for the stock market. For the week, the Dow Jones weakened -6.5%, the S&P 500 -5.6% and the Nasdaq -5.5%, it is important to mention that this is the biggest weekly sell-off since March but all three indices still remain in a bull market.

The US presidential elections will be on November 3 and according to the polls, US President Trump’s rival, Joe Biden, leads. Democrats and Republicans are using a coronavirus aid package as an election tool, both parts have reported “progress,” but continued to extend discussions.

There are little chances of an aid bill being approved before November 3 because it would need to pass Congress. Drugmaker Pfizer announced that it could have a coronavirus vaccine ready in the United States by the end of this year.

Vaccines and treatments are still under study and advancing, but there’s no magic solution yet.

S&P 500 down 5.6% on a weekly basis

For the week, S&P 500 (SPX) booked a 5.6% decrease and closed at 3,269 points.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are 3,200 and 3,000 points, 3,400 and 3,600 points represent the resistance levels. If the price jumps above 3,400 points it would be a buy signal for the S&P 500 and we have the open way to 3,500 points.

Rising above 3,600 points supports the continuation of the bullish trend and the next price target could be located around 3,700. On the other side, if the price falls below 3,200 points it would be a “sell” signal and we have the open way to 3,000 points.

DJIA down 6.5% on a weekly basis

For the week, the Dow Jones Industrial Average (DJIA) weakened 6.5% and closed at 26,501 points.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are 26,000 and 25,000 points, 28,000 and 29,000 points represent the resistance levels. If the price jumps above 28,000 points it would be a buy signal for Dow Jones Industrial Average (DJIA) and we have the open way to 29,000 points.

Rising above 30,000 points supports the continuation of the bullish trend and the next price target could be located around 30,111. On the other side, if the price falls below 26,000 points it would be a strong “sell” signal and we have the open way to 25,000 points.

Nasdaq Composite down 5.5% on a weekly basis

 The Nasdaq Composite (COMP) weakened 5.5% on a weekly basis and closed at 10,911 points. As   long the price is above 10,000 points this index remains in the “buy” zone but if the price falls below 10,000 points it would be a strong “sell” signal.

Data source: tradingview.com

On this chart, I marked important resistance and support levels. The important support levels are 10,500 and 10,000 points, 11,500 and 12,000 points represent the resistance levels. If the price jumps above 11,500 points it would be a buy signal for Nasdaq Composite and we have the open way to 12,000 points.

Rising above 12,000 points supports the continuation of the bullish trend and the next price target could be located around 12,500. On the other side, if the price falls below 10,500 points it would be a “sell” signal and we have the open way to 10,000 points.

Summary

Dow Jones, S&P 500 and Nasdaq Composite weakened on a weekly basis but still remain in a bull market. The pandemic pushed U.S. hospitals to the brink of capacity as coronavirus cases surpassed 9 million and concerns amid the ongoing pandemic continue to dominate the financial markets. The US reported over 99K new cases in the last 24 hours, although President Donald Trump refuses to pause the economic activity, which is positive for the stock market. The US presidential election, the Federal Reserve monetary policy meeting and the release of the October Nonfarm Payroll report, will all take place next week.

The post Dow Jones, S&P 500 and Nasdaq weakened on a weekly basis but remain in a bull market appeared first on Invezz.

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