94% effectiveness of Moderna Vaccine could not lift the market

DJIA futures traded lower 150 points at the current time despite the positive vaccine news from Moderna. It seems the market ready to make a bearish correction after two weeks rally from 26,000 toward near 30,000. Although vaccine news is positive, the backdrop from the surge of new coronavirus cases might put serious damage to the economy.

The world will need to wait several months after the vaccine is approved before it could be distributed.

Asian & European Stock market

The Asian stock market mixed today. Japan stock market up 107.69 points (+0.42%) to 26,014.62, China stock market down 7.07 points (-0.21%) to 3,339.90 and Australia ASX 200 up 13.90 points (+0.21%) to 6,498.20. The European stock market retreat despite the positive vaccine sentiment. DAX Germany down 0.46%, UK FTSE down 1.13%, and Euro Stoxx600 down 0.52%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA made another bullish close yesterday though below the 30,000 handles. The index is expected to continue its upward movement under the current bullish sentiment. However, the index might be near the correction phase after a rally from 26,000. Nevertheless, traders will continue to stay bullish on equity until a major bearish reaction formed.

Vaxart Inc (VXRT)

VXRT share prices are under bearish pressure but managed to return above the daily SMA 200. We could see a triangle pattern formed on the daily chart. If the share prices could maintain its bullish pressure then we might see a bullish rally to test the top of the triangle.