Investors are concerned about the regional lockdowns, which are being triggered due to the rise in coronavirus cases. Yesterday, we heard from Dublin, Ireland that the entire country is closing its bars, restaurants, and most shops. There is an echo of this message in other parts of the European countries as well, and investors are wondering if we could have something similar in the U.S. as well.
The Asian stock market closed mostly mixed. The Shanghai index increased by 0.23%. The Korean KOSPI index also moved higher by 0.44%, while the Nikkei index declined 0.44%. The HSI index fell by 0.11%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth lost some ground yesterday. 67% of the Dow Jones stocks traded above their 200-day moving average. This is a change of -6% from a day earlier.
The S&P 500 stock breadth also experienced weakness. 67% of the shares traded above their 200-day moving average. This is a change of -4% from a day earlier.
Dow Jones Futures Today
The Dow Jones futures are trading flat today. Traders are hopeful that they will hear good news on the second stimulus package. Remember, the House Speaker, Nancy Pelosi, self-imposed a deadline concerning the aid package, which is today. The reality is that it is unlikely that we will have anything before the U.S. elections.
The Dow Jones futures are once again close to its 50-day SMA on the daily time frame. If the Dow fails to stay above the 50-day SMA, we may see the index continuing its journey towards the 100-day SMA. Bulls are still not giving up hope as they know that the price is trading well above the 200-day SMA. Hence, any pullback could be a healthy correction.
The S&P 500 index, which represents the wider stock market, is struggling to maintain its upward trend. The price is still trading above the 50, 100, and 200-day SMA on the daily time frame. The immediate support is at 3416, while the resistance is at 3550.
Stock Market Rally
The S&P 500 stock index closed firmly in negative territory yesterday, the index declined by 1.63%. The energy sector led the index lower, and all 10 sectors closed lower.
The Dow index also finished the day on a negative note yesterday; the Dow stocks moved the index lower by 1.44%. 29 shares of the Dow fell, and 1 closed higher.
The NASDAQ composite, a tech-savvy index, moved lower by 1.84% yesterday.
S&P 500 Leaders and Laggards
Western Digital (NASDAQ:WDC) stock contributed the biggest gain, soaring 7.85%. Gartner (NYSE:IT) stock was the largest drag; it fell by 4.41%. The S&P 500 stock index is up 6.1% so far this year.
Dow Jones Leaders and Laggards
Intel (NASDAQ:INTC) stock advanced higher by 0.78% and was the biggest mover for the Dow, while United Health stock declined 1.72%, the biggest drag for Dow Jones Industrial Average index.