Sector rotation is the key theme when it comes to the US stock market as investors continue to sell their positions in tech stocks and move their money in more cyclical sectors. All of this is happening at a time when coronavirus cases are going through the roof over in the US and investors are concerned that there could be some restrictive measures announced very soon.

The Asian stock market continued their surge while tech stocks came under selling pressure. The ASX 200 index closed with a gain of 1.27%. The Korean Kospi index advanced 1.35%, while the Nikkei index surged 1.78%. The Shanghai index declined by 0.53%.

Dow Jones and S&P 500: Market Breadth

The Dow Jones’ market breadth gained momentum yesterday. 87% of the Dow Jones stocks traded above their 200-day moving average. This is a change of +4% from a day earlier.  

The S&P 500 stock breadth became stronger. 83% of the shares traded above their 200-day moving average. This is a change of +8% from a day earlier. 

Dow Jones Futures Today

The Dow Jones futures are trading higher by 100 points today. In terms of economic data, investors will be looking at the MBA mortgage application (WoW). The previous reading was 3.8% and any number which is better than the previous reading will confirm further strength for the US housing sector.

The Dow Jones futures are trading above the 50, 100 and 200-day SMA on the daily time frame which confirms that uptrend is in place. Having said that, the Dow Jones really need some help in order for the price to go beyond the highs of Monday. For the time being, it seems that consolidation is the way forward. The resistance is at 29993 and the support is at 26219. The RSI is also approaching close to the oversold zone - currently it is at 60.1.

The S&P 500 futures, which represent the broader stock market, are showing much weaker price action as compared to the Dow Jones. The price is trading above all the important moving averages such as the 50, 100 and 200-day simple moving average. The resistance is at an all-time high which is at 3667 and the support is at 3429. 

Stock Market Rally

The S&P 500 stock index gave up some of its gains yesterday; the index fell by 0.14%. The information technology sector led the index lowerr- three out of 11 sectors closed lower. 

The Dow index continued to move higher; the Dow stocks moved the index higher by 0.90%. 8 shares of the Dow fell, and 22 closed higher. 

The NASDAQ composite, a tech-savvy index, closed with a loss of 1.37%. 

S&P 500 Leaders and Laggards: D.R. Horton and Carnival
D. R. Horton stock contributed the biggest gain, soaring 9.13%. Carnival stock was the largest drag; it fell by 13.1%. The S&P 500 stock index is up 9.7% so far this year.

Dow Jones Leaders and Laggards: Boeing and Salesforce
Boeing advanced higher by 5.2% and was the biggest mover for the Dow, while Salesforce stock declined 4.48%, the biggest drag for Dow Jones Industrial Average index.


Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD hits fresh one-month low amid souring market mood

EUR/USD has been extending its falls and dips below 1.21 as US retail sales badly disappointed and the worsening mood is supporting the safe-haven dollar. Markets digest Biden's stimulus plan. US Consumer Sentiment declined to 59.2 points. 


GBP/USD retreats toward 1.36 amid fresh dollar strength

GBP/US has pared its gains and falls toward 1.36 as the dollar gains ground. The UK economy shrank by 2.6% in November, better than estimated. The UK is ramping up its vaccination campaign and PM Johnson is pressured to ease the lockdown. 


Gold extends sideways grind near $1,850

The XAU/USD pair registered small daily gains on Thursday but struggled to extend its recovery amid a lack of significant fundamental drivers on Friday. As of writing, the pair was up 0.15% on a daily basis at $1,849.

Gold news

Forex Today: Markets “sell the fact” on Biden's stimulus, dollar rises, retail sales eyed

Markets are on the back foot after Biden hinted about tax hikes while introducing stimulus. The safe-haven dollar is edging higher despite Powell's pledge to keep monetary policy accommodative. 

Read more

DXY breaks above key downtrend, eyes move above 91.00

USD has been strongly supported on what has shaped up to be a very much risk off final trading day of the week. Most G10/USD pairs have seen significant weakness, aside from CHF/USD and JPY/USD, given that the two currencies are also considered “safe havens”.

US Dollar Index News

Forex Majors