Dow Jones, S&P 500, and Nasdaq advanced on a weekly basis supported by the vaccine news

The U.S. stock indices have advanced on a weekly basis, supported by the news that the U.S. Food and Drug Administration is likely to approve the coronavirus vaccine by the mid of December. The S&P 500 and the Nasdaq reached a new record high last week, while the Dow Jones Industrial Average closed the week above 29,990 for the first time.

Traders and investors are still ignoring record coronavirus contagions in the U.S. and the stocks continue to trade in a bull market. Hospitalizations in the country have been hitting records for seventeen days in-a-row and the U.S. dollar remained under selling pressure in thinned holiday trading.

The U.S. recently reported over 200K new cases in one day, but it seems for now that the worst has been avoided. The U.S. Food and Drug Administration will probably approve the coronavirus vaccine in the next two weeks, but further turmoil should not be discounted for the U.S. stock market.

"Longer lockdowns because of the virus are among the reasons the near-term risk for stocks is skewed to the downside," said Savita Subramanian from BofA Global Research.

The U.S. will release the Nonfarm Payroll report this Friday, and analysts expect that the country has added 520K new jobs in November. This will be one of the main events next week, but it is also important to mention that Donald Trump has agreed to begin a formal transition with Joe Biden.

S&P 500 up 2.27% on a weekly basis

For the week, S&P 500 (SPX) booked a 2.27% increase and closed at 3,638 points.

The current risk/reward ratio is not good for long-term investors, but as long the S&P 500 is above 3,000 points, this index remains in a bull market. If the price jumps above 3,650 points, it would be a "buy "signal for the S&P 500, but if the price falls below 3,400 points, it would be a "sell" signal, and we have the freeway to 3,200 points.

DJIA up  2.21% on a weekly basis

For the week, the Dow Jones Industrial Average (DJIA) advanced 2.21% and closed at 29,910 points.

The critical support levels are 29,000 and 28,000 points; 30,000 and 30,500 represent the resistance levels. This index cannot stabilize above 30,000 points, but if the price jumps above this resistance level, it would be a buy signal for Dow Jones Industrial Average (DJIA), and we have the open way to 30,200 points.

On the other side, if the price falls below 29,000 points, it would be a firm "sell" signal, and we have the open way to 28,000 points.

Nasdaq Composite up 2.96% on a weekly basis

 The Nasdaq Composite (COMP) advanced 2.96% on a weekly basis and closed at 12,205 points.

On this chart, I marked significant resistance and support levels. The critical support levels are 12,000 and 11,000 points; 12,500 and 13,000 points represent the resistance levels.

If the price jumps above 12,500 points, it would be a buy signal for Nasdaq Composite, and we have the open way to 12,800 points. On the other side, if the price falls below 11,000 points, it would be a firm "sell" signal, and we have the open way to 10,000 points.

Summary

The U.S. stock indices have advanced on a weekly basis, supported by the news that the U.S. Food and Drug Administration is likely to approve the coronavirus vaccine by the mid of December. Dow Jones, S&P 500, and Nasdaq continue to trade in the "buy" zone, and for now, there is no indication of a trend reversal.