Stock Market Breadth Maintains Its Bullish Momentum

Published 08/24/2020, 05:05 AM
Updated 07/09/2023, 06:31 AM
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Global Stock Market Today

The global stock market rose today and started the week on a positive note. Traders are largely focused on the potential coronavirus treatment approved by the US regulators and the Fed’s monetary policy review at Jackson Hole.  Stocks in Asia gained, the Shanghai index gained 0.19%. The HSI stock index soared by 1.39% while the Korean KOSPI also jumped higher by 0.66%. The Australian ASI index advanced 0.36%. 

Dow Index And S&P500 Index: Market Breadth

The U.S. stock market's breadth confirmed that the bulls are still in control of the price. 57% of the Dow Jones stocks traded above their 200-day moving average on Friday. 

The S&P 500 stock breadth moved maintained its gains. 57% of the shares traded above their 200-day moving average on Friday. 

Dow Jones And S&P 500 Futures Today

The Dow Jones futures are moving higher and they are up by 110 points. Investors want to know how the Fed is going to control the inflation in the US and if there will be any change in the monetary policy. The fact about the US economic data is that it is still fragile and last week’s Initial Jobless Claims numbers have ticked higher which is a matter of concern for policymakers.

The FDA has approved the potential treatment of coronavirus patients by using blood plasma and this is supporting the risk-on rally today.

The Dow Jones futures have started the week on a positive note and they are already out of the previous week’s trading range. The daily time frame for the Dow Jones shows that the Dow price has crossed above the highs of the last week. This confirms that the upward trend is picking up the moment.

The cross over of the 100-day SMA and the 200-day SMA remains in focus among technical traders. The fact that the 100-day SMA has crossed above the 200-day SMA is positive for the Dow Jones index. In addition to this, the Dow Jones is also trading above the 50, 100 and 200 day SMA.

The S&P 500 Futures, the broader picture of the U.S. equity market, is showing some serious bullish signals. The price has broken out of the all-time range. This marks the start of a new bull cycle as the S&P 500 index remains above all the important moving averages which are 50, 100 and 200-day simple moving averages.

If the bull run continues and this doesn’t turn out to be a fake breakout, the current bullish break out can potentially push the S&P 500 index close or even above the 4,500. But of course, before that, the S&P 500 index needs to clear the 4,000 mark. 

Stock Market Rally 

The S&P 500 index recorded another positive session on the final trading day of the last week. The S&P 500 stock index gained 0.34%. Tech sector pushed the S&P 500 index higher, and seven sectors out of all eleven closed higher. 

Apple (NASDAQ:AAPL) stock contributed the most gains, it jumped higher by 5.15%. Keysight stock was the biggest drag; it fell by 6.77%. The S&P 500 stock index’s dividend yield is 1.77% on a trailing 12-month basis.

The Dow index gained  190 points on Friday, and the Dow stock index soared by 0.69%. 15 stocks of the Dow Jones Index increased in value, and 15 shares of the Dow moved lower. Apple stock advanced higher by 5.15% and was the biggest mover for the Dow, while Boeing (NYSE:BA) stock dropped 1.23%, the biggest drag for Dow Jones industrial average index.  

The NASDAQ composite, a tech-savvy index, gained 0.68% yesterday. 

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