Dow Touches 30k, what is next?

Another incredible day for US equities and stocks rocketed higher after Pfizer’s vaccine news. Most of the major indices were up 3-5% today, while the Nasdaq 100 index was heavily underperforming, trading flat on the day.

The Dow Jones index touched the magical level of 30,000 USD for the first time ever, but hasn’t been able to hold it so far. Traders took profits and the index dropped circa 400 points from this level, but still remaining 1,200 points higher on the day.

The first support appears to be at September’ highs near 29,200 USD and it seems likely that this level will be retested. As long as the index trades above this support, the short-term trend seems bullish, while both the medium and long-term uptrends were confirmed by the breakout today.

Another support could be at October highs at around 29,000 USD. If the index drops below these levels, the recent breakout would be considered as a fake one and the price could decline quickly toward 28,500 afterward.

Alternatively, the resistance is now at 30,000 USD and if the index closes above this zone on a daily basis, the next target could be at 33,000 USD.

 
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