The Dow Jones, S-P 500 and Nasdaq fell on a weekly basis, but remain in a bull market.

0

This week the Dow Jones fell by -6.5%, the S&P 500 by -5.6% and the Nasdaq by -5.5%,
In the month under review, the Dow fell by -4.6%, the S&P 500 by -2.8% and the Nasdaq by -2.3%.
Investor attention is currently focused on the upcoming presidential elections

The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite weakened on a weekly basis, and the focus in the US shifted to the upcoming presidential elections on November 3. The pandemic pushed US hospitals to the edge of capacity as the number of coronavirus cases exceeded 9 million and concerns about the ongoing pandemic continue to dominate financial markets.

The US has reported over 99,000 new cases in the last 24 hours, despite President Donald Trump’s refusal to halt economic activity, which is positive for the stock market. During the week, the Dow Jones weakened by -6.5%, the S&P 500 by -5.6% and the Nasdaq by -5.5%. It is important to note that this is the largest weekly sell-off since March, but all three indices are still in a bull market.

The US presidential election is scheduled for November 3rd and according to the polls, the rival of US President Trump, Joe Biden, is leading. Democrats and Republicans are using a coronavirus bailout package as an electoral tool, both parties have reported “progress” but have widened discussions further.

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.

S&P 500 down 5.6% on a weekly basis

This week, the S&P 500 (SPX) recorded a 5.6% decline and closed at 3,269 points.

Data source: tradingview.com

On this diagram I have 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, that would be a buy signal for the S&P 500, and we have the open path to 3,500 points.

A rise above 3,600 points supports the continuation of the uptrend, and the next price target could be around 3,700. If the price on the other side falls below 3,200 points, this would be a “sell” signal and we have the open path to 3,000 points.

DJIA down 6.5% on a weekly basis

This week, the Dow Jones Industrial Average (DJIA) fell by 6.5% to close at 26,501 points.

Data source: tradingview.com

On this diagram I have 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, this would be a buy signal for the Dow Jones Industrial Average (DJIA) and we have the open path to 29,000 points.

A rise above 30,000 points supports the continuation of the upward trend, and the next price target could be 30,111. On the other hand, it would be a strong “sell” signal if the price falls below 26,000 points, and we have the open path to 25,000 points.

Nasdaq Composite down 5.5% on a weekly basis

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

Data source: tradingview.com

On this diagram I have 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 the Nasdaq Composite and we have the open path to 12,000 points.

A rise above 12,000 points supports the continuation of the uptrend, and the next price target could be 12,500. On the other hand, if the price falls below 10,500 points, this would be a “sell” signal and we have the open path to 10,000 points.

Summary

The Dow Jones, S&P 500 and Nasdaq Composite fell on a weekly basis, but are still in a bull market. The pandemic pushed US hospitals to the edge of capacity as the number of coronavirus cases exceeded 9 million and concerns continue to dominate financial markets amidst the ongoing pandemic. The US has reported over 99,000 new cases in the last 24 hours, despite President Donald Trump’s refusal to halt economic activity, which is positive for the stock market. The U.S. presidential election, the Federal Reserve monetary policy meeting and the release of the October Nonfarm Payroll report will all take place next week.

Share.

Leave A Reply