Dow Jones, Russell 2000, Nasdaq 100 Price Forecast:
- The week opened with a bang on positive news of a breakthrough in the hunt for a Covid vaccine.
- The Dow[1] jumped up to a fresh all-time-high, and the Russell 2000 isn’t far behind as buyers continue to drive in small caps.
- Curiously, the Nasdaq[2] 100 has been on its heels so far this week, testing a huge zone of potential support. The Nasdaq was the high-flyer from the March lows, jumping by as much as 88%. Why would the tech-heavy index be lagging now that there’s positive news on the horizon?
- The analysis in this article heavily utilizes price action and chart patterns[3]. To learn more about price[4] action, check out our DailyFX Education[5] section, where it’s taught amongst a host of other candlestick patterns[6] and formations.
It’s been a brutal stretch in the headlines this year, and perhaps even more so over the past month as the US Presidential Election dominated the airwaves. But yesterday produced something of a positive note as news circulated that Pfizer’s vaccine candidate is currently showing a 90% efficacy rate.
The timing of the announcement, however, is somewhat curious, as the study being quoted isn’t even finished yet. And given the timeline of Covid infections, the early stage of those results is somewhat questionable and very much out of the norm for a drug trial: When the study concludes, we very well may be looking at a lower efficacy rate; but as long as that rate is above 50%, it’s widely thought that the drug would end up being approved.
Perhaps the more exciting part of those results wasn’t necessarily
