Dow Jones, S&P 500 and Nasdaq advanced on a weekly basis and remain in a bull market

Joe Biden won the presidential election in his birth state of Pennsylvania this Saturday and he become 46th president of the United States. He has 290 electoral votes which is more than enough to capture the White House and to deny President Trump a second term.

Donald Trump said there is evidence of fraud in several of the deciding states that will be presented to the courts but this will not change anything according to political analysts. The US stock indices had their best weekly percentage gains since the week that ended April 10.

For the week, the Dow Jones advanced 6.9%, the S&P 500 7.3% and the Nasdaq 9% which is its fifth straight session of gains. The US reported the October employment situation on Friday, the country added 638K new jobs which is slightly better than anticipated.

The unemployment rate fell to 6.9% from 7.9 as the labor force participation rate advanced to 61.7% from 61.4%. The US stock market is also supported by upbeat over the prospect of a divided Congress and less risk of major policy changes.

On the other side, concerns about sluggish economic growth amid the ongoing pandemic continue to dominate the financial markets. The US reported over 100K new cases in one day and the pandemic pushed U.S. hospitals to the brink of capacity.

S&P 500 up 7.3% on a weekly basis

For the week, S&P 500 (SPX) booked a 7.3% increase and closed at 3,509 points.

On this chart, I marked important resistance and support levels. The important support levels are 3,400 and 3,200 points, 3,600 and 3,700 points represent the resistance levels. If the price jumps above 3,600 points it would be a buy signal for the S&P 500 and we have the open way to 3,650 points.

Rising above 3,700 points supports the continuation of the bullish trend and the next price target could be located around 3,800. On the other side, if the price falls below 3,400 points it would be a “sell” signal and we have the open way to 3,200 points.

DJIA up  6.9% on a weekly basis

For the week, the Dow Jones Industrial Average (DJIA) advanced 6.9% and closed at 28,323 points.

On this chart, I marked important resistance and support levels. The important support levels are 27,000 and 26,000 points, 29,000 and 30,000 points represent the resistance levels. If the price jumps above 29,000 points it would be a buy signal for Dow Jones Industrial Average (DJIA) and we have the open way to 30,000 points.

Rising above 30,000 points supports the continuation of the bullish trend and the next price target could be located around 30,500. On the other side, if the price falls below 27,000 points it would be a strong “sell” signal and we have the open way to 26,000 points.

Nasdaq Composite up 9% on a weekly basis

 The Nasdaq Composite (COMP) advanced 9% on a weekly basis and closed at 11,895 points. As long the price is above 10,000 points this index remains in the "buy" zone but if the price falls below 10,000 points it would be a strong “sell” signal and the indication of trend reversal.

On this chart, I marked important resistance and support levels. The important support levels are 11,000, 10,500 and 10,000 points, 12,000 and 12,500 points represent the resistance levels. If the price jumps above 12,000 points it would be a buy signal for Nasdaq Composite and we have the open way to 12,200 points.

Rising above 12,500 points supports the continuation of the bullish trend and the next price target could be located around 13,000. On the other side, if the price falls below 11,000 points it would be a “sell” signal and we have the open way to 10,500 points.

Summary

Dow Jones, S&P 500 and Nasdaq Composite advanced on a weekly basis and remain in a bull market. Joe Biden won the presidential election in his birth state of Pennsylvania this Saturday and he become 46th president of the United States. Donald Trump said there is evidence of fraud in several of the deciding states that will be presented to the courts but this will not change anything according to political analysts. The US reported the October employment situation on Friday, the country added 638K new jobs and the unemployment rate fell to 6.9%.