Dow Jones hits new record high: Is there more upside or will we see a correction?

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Dow Jones ended record high on Tuesday on hopes that US lawmakers will pass a $1.9 trillion COVID-19 relief aid this month and strong Q4 earnings results. The recent rally also supported by bullish comments from the Janet Yellen, the US treasury secretary, she said the US economy could return to full employment next year if President Biden’s $1.9 trillion relief package is passed.

According to US President Joe Biden, the size of the stimulus checks of $ 1,400 is non-negotiable, but some parts of the bill could be negotiated. The stimulus bill is expected to be approved by March 15 if the Republican Party does not go along with new Democratic President Joe Biden.

During the last week, the main stock market indexes rose the most since November with the Dow Jones increased by more than 4%, its biggest one-week gain since the week ending Nov. 6.

Apart from this, investors keep an eye on the development of COVID-19 vaccination around the world. Recently the WHO said, the number of people in the world who have been vaccinated against the coronavirus so far has surpassed the number of people being infected by the virus.

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The technical scenario is absolutely bullish after the price break above 31,000 zones and overall the movement remained bullish throughout this week. While considering the recently bullish rally the Dow may find strong resistance in the area of 31,800 where the price has strong resistance. On the downside, in the short-term the first immediate support at 31,270 followed by 31,000/30,950.

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Read more- https://gulfbrokers.com/en/dow-jone...there-more-upside-or-will-we-see-a-correction
 
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