Dow Jones Hits Fresh Record Highs. Where next?

Global stocks printed fresh record highs this week as Dow Jones Industrial Average (DJIA) finally surpassed the 30,000 mark for the first time in history.

Fundamental analysis: Biden and vaccine sending equities higher 

A major breakthrough in the Covid-19 vaccine development and the fact that the U.S. has started transition to the Biden presidency paved the way for stocks to race higher. 

Media outlets reported yesterday that the President-elect Joe Biden is looking to nominate the former Federal Reserve Chair Janet Yellen as Treasury Secretary, in a move that is likely to be praised by investors. 

According to the latest Reuters poll, equities are expected to continue climbing higher. Data shows that 75% of respondents said the ongoing bullish run would last at least six months.

Technical analysis: A pullback likely

The buyers got what they wanted - a fresh all-time high in Dow Jones. Wednesday’s move marks the trip into an uncharted territory for the bulls. Given that the short-term target is achieved, DJI may correct now to 29100.

Any additional move higher is dependent on more positive news. A new fiscal stimulus package would likely send DJI towards 31,000, which represents the next target for the bulls. 

Summary

Global equities have made additional gains this week with the DJI hitting a fresh all-time high. Analysts believe that stocks are likely to continue trading higher on improving risk sentiment.