The Dow Jones Industrial Average weakened on a weekly basis, but is still in a bull market.

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If the price jumps above 29,000 points, the next goal could be 29,500 or even 30,000 points
The USA reported a record high of 82,668 cases on Saturday
The focus in the USA is shifting to the upcoming presidential elections on November 3

Concerns about sluggish economic growth in the midst of the ongoing pandemic continue to dominate the financial markets. Nevertheless, traders are ignoring the record corona virus infections and US indices are still in a bull market.

The Nasdaq Composite and the S&P 500 rose on Friday, while the Dow Jones Industrial Average (DJIA) Index fell by 0.1%. The US reported a record high of 82,668 cases on Saturday, and risk aversion is likely to prevail at the beginning of the week.

Investor attention is currently focused on the negotiations for the U.S. stimulus package and the upcoming presidential election. The U.S. presidential election will be held on November 3 and according to the polls, U.S. President Trump’s rival, Joe Biden, is leading.

Democrats and Republicans are using a coronavirus stimulus package as an electoral tool, both parties have reported “progress” but have widened the discussions. The chances of a relief bill being passed before November 3 are slim, as it would still have to be passed by Congress.

The drug manufacturer Pfizer announced that it may have a coronavirus vaccine ready in the United States by the end of this year. Vaccines and treatments are still being researched and developed, but there is no patent solution yet. There won’t be one in the foreseeable future either, and that means a further contraction of the economy or, in the best case, slow growth.

DJIA down 0.9% on a weekly basis

This week, the Dow Jones Industrial Average (DJIA) fell by 0.9% and closed at 28,335 points.

Data source: tradingview.com

On this diagram I have marked important resistance and support levels. The important support levels are 27,000 and 26,000 points, 29,000 and 30,000 points represent the resistance levels. If the price jumps above 29,000 points, this would be a buy signal for the Dow Jones Industrial Average (DJIA) and we have the open path to 30,000 points.

A rise above 30,000 points supports the continuation of the upward trend, and the next price target could be 30,111. However, if the price falls below 27,000 points, this would be a “sell” signal, and we have the open path to 26,000 points.

Summary

The Dow Jones Industrial Average (DJIA) weakened on a weekly basis, but is still in a bull market. The US reported a record high of 82,668 cases on Saturday, and risk aversion is likely to dominate early in the week. Investor attention is currently focused on the negotiations of the US stimulus package and the upcoming presidential election.

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