Monday euphoria, Indexes and Dollar rises
Traders reacted with euphoria on Monday as Pfizer announced that their vaccine against Covid-19 was strongly effective and the results exceeded expectations. Early analysis showed that individuals who received two injections of the vaccine three weeks apart experienced 90% fewer cases of symptomatic Covid-19 than those who receied placebo. Some experts warned though that for the vaccine to have real effect, it should reduce severe illness and death. But we do not know yet whether this vaccine does that.
The rally was also supported by weekend news that Joe Biden won the presidential election. The Trump adminitsration is pursuing legal challenges, however, it is unclear if there is any way to reverse the current vote count in sveral states.
All major indexes rose and closed in the green except of the NASDAQ Composite Index. Dow Jones Industrials closed 2.95% and the S&P 500 1.17% higher. The US Dollar rallied and closed against the Yen on a highest level in three weeks where it hit the wall of double resistance. A descending trendline and previous high (A) coincided and made the dollar retreat from this level at 105.64. In case the dollar had still the momentum to rise, it would have to fight with two more resistance levels (B,C) on the way up. If the resistance at A proves to be strong and sends the price down, the next support level would be the previous low at 103.20.