The market showed strong momentum throughout Monday’s action following a report from biotech company, Moderna (MRNA), on positive data for an experimental coronavirus vaccine. Adding to the upbeat sentiment were comments from Fed Chair Powell on Sunday night and optimism of an economic recovery.
Powell said the Fed is not out of ammunition and could do more, while warning that he wouldn’t bet against the U.S. economy neither in the short nor the long run.
The Russell 2000 rallied to an early session high of 1,338 while closing at 1,333 (+6.1%). Key resistance at the 1,235 level was breached but held with continued closes above this level, keeping a retest towards 1,350 in play.
The Dow closed at 24,597 (+3.9%) after testing an afternoon high of 24,708. Prior resistance at 24,750 was challenged but held with continued closes above this level signaling additional upside towards 25,000-25,250.
The S&P 500 traded to an afternoon high of 2,968 before settling at 2,953 (+3.2%). Fresh resistance at 2,975 was also challenged with a close above this level signaling additional momentum towards 3,000 and the 200-day moving average.
The Nasdaq reached an intraday peak of 9,234 while closing at 9,267 (+2.4%). New resistance at 9,250 was cleared but held with a close above this level getting the 9,350 level back in focus.