Janet Yellen, former Fed Chairwoman, will become the US Treasury Secretary, and traders are cheering this news because of her flawless track record. Yellen is someone who understands the economy well, and she will remain highly supportive and accommodative. In addition to this, we are also seeing the stocks surging today because it seems like President Trump has finally accepted the results of the US elections as the transition of power has started. President-elect will finally have access to the office, and for traders, this means less uncertainty.
The Asian stock market staged a massive rally today as Japanese markets supported the markets. The ASX 200 index closed with a gain of 1.26%. The Korean Kospi index advanced 0.58%, while the Nikkei index advanced 2.50%. The Shanghai index fell by 0.34%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones' market breadth continued to lose more strength. 80% of the Dow Jones stocks traded above their 200-day moving average. This is a change of -3% from a day earlier.
The S&P 500 stock breadth gained its bullishness. 88% of the shares traded above their 200-day moving average. This is a change of +5% from a day earlier.
Dow Jones Futures Today
The Dow Jones futures are trading lower by 250 points today. In terms of economic data, investors will be looking at the Consumer Confidence data. The forecast for the data is 97.7, while the previous reading was at 100.9.
The Dow Jones futures have started to move higher, and it is highly likely that we may see the Dow Jones rechallenging the all-time high. The momentum is strong as the Dow experienced a massive upward move yesterday. The Dow's price is only a few hundred points away from its all-time high, and it is likely that today or tomorrow we may see the Dow reaching its all-time high if the momentum continues at its current pace. In terms of trend, the bulls are in strong control of the price is as the price is trading above the 50, 100, and 200-day SMA on the daily time frame. The near term resistance is at 29,993, and the support is at 29,199.
The S&P 500 futures, which represent the broader stock market, are approaching the highs of last week, and a break of this will open the door towards the all-time high. Looking at the daily time frame, it seems like that the bull momentum has picked up some steam as yesterday's price move was greater than the past two days. In addition to this, the S&P 500 futures are also trading above the 50, 100, and 200-day simple moving averages on the daily time frame. The resistance is at an all-time high, which is at 3,667, and the support is at 3,548.
Stock Market Rally
The S&P 500 stock index closed in positive territory yesterday; the index gained 0.56%. The financial sector led the index lower- 6 out of 11 sectors closed higher.
The Dow index also closed higher yesterday; the Dow stocks moved the index higher by 1.12%. Twenty-three shares advanced while seven shares closed lower.
The NASDAQ composite, a tech-savvy index, closed flat yesterday.
S&P 500 Leaders and Laggards
Occidental (NYSE:OXY) stock contributed the biggest gain, soaring 16.8%. Newmont Corp was the largest drag; it fell by 4.82%. The S&P 500 stock index is up 11% so far this year.
Dow Jones Leaders and Laggards
Boeing (NYSE:BA) provided the biggest help for the Dow Jones; it advanced by 5.97%, while Apple (NASDAQ:AAPL) was the largest decliner, it fell by 2.97%.
Bitcoin
The crypto king is consolidating near its all-time high. Traders are waiting for Bitcoin to break above the all-time high and a break of this will open the door towards the next level of 50K.