(Daily Notion): US30 Closes On a Positive Note, SPX500 and NAS100 Took a Dip. Next Mover: U.S. Data, Spread of New Covid-19 Strain

NASDAQ 100 (as of Dec 22, 2020 at 3.05 p.m.)

Source: Yahoo Finance

SPX 500 (as of Dec 22, 2020 at 3.05 p.m.)

Source: Yahoo Finance

US30 (as of Dec 22, 2020 at 3.05 p.m.)

Source: Yahoo Finance

The SPX500 dipped 0.39% while the NAS100 was down 0.10%. The US30 was up 0.12% but it was a tumultuous journey throughout the day as it dipped more than 400 points earlier.

Tesla’s shares dropped 6% which weighed on SPX500.

Despite news on a new Coronavirus mutation in England, the market was cushioned in part by the financials. Banking stocks surged upwards upon announcement by the Federal Reserve that it would allow banks to buy back stocks and pay out dividends.

According to analyst, the US30 is within an ‘ascending channel’ with the uptrend being supported by its 20-day Simple Moving Average (SMA). Support can be found at 29,850 which is the 76.4% Fibonacci extension. Meanwhile, resistance can be found at 30,870 (100% Fibonacci extension).

Traders would be keeping an eye out for the upcoming U.S. data such as the Core Personal Consumption Expenditures (PCE) Price Index, existing home sales, gross domestic product (GDP), and initial jobless claims.

The new Covid-19 strain called the B.1.1.7 strain that was first detected in the U.K. is also a concern. Canada and Hong Kong have closed their borders to the U.K. The mutation is reported to be 40% - 70% more transmissible than other variants, and there is no solid proof that it is vaccine resistance. This is causing jittery among traders. A continuous spread of this new strain could trigger a risk-off sentiment in the market.

FOLLOWME User Sentiment (as of Dec 22, 2020 at 3 p.m.)

SPX500

The overall sentiment of FOLLOWME traders shows a total of 78.42% is leaning towards short selling, while 21.58% leans towards a long position.

NAS100

The overall sentiment of FOLLOWME traders shows a total of 75.46% is leaning towards short selling, while 24.54% leans towards a long position.

US30

The overall sentiment of FOLLOWME traders shows a total of 75.85% is leaning towards short selling, while 24.15% leans towards a long position.