Political certainties, vaccine news boost the market but U.S-China trade wars might continue

U.S stock market extended its upward movement and DJIA set a new record high above 30,000 handles. The positive sentiment continues to boost the stock market and it is expected to continue. However, traders’ and investors’ focus might shift back again toward the U.S-China trade relation.

Joe Biden’s administration will start electing names to available positions. Monitoring people who have been chosen will give clues on the future administration’s policies.

Asian & European Stock market

The Asian stock market mixed. Japan stock market up 131.27 points (+0.50%) to 26,296.86, China stock market down 40.50 points (-1.19%) to 3,362.33 and Australia ASX 200 up 39.20 points (+0.59%) to 6,683.30. The European stock market lower on Bank’s weak projection. DAX Germany down 0.17%, UK FTSE down 0.16%, and Euro Stoxx600 down 0.19%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index finally closed above 30,000 handles the first time. The index might continue upward as sentiment continues to be bullish. However, the index may reverse its direction and start moving lower again too. At the current time, the market is waiting for the announcement of the Joe Biden administration which might give clue on the future policies.

Wells Fargo (WFC)

WFC share prices made bullish progress by closing above the daily SMA 200. The share prices will use the averages as a level to bounce. If the share prices continue upward then it will target the level around $34.00 – $35.00. Traders could enter long positions near the SMA 200 or the previous horizontal resistance around $25.00 – $26.00.