Weekly charts and its signs!
- First Trust Dow Jones Global Select Dividend Index Fund declares quarterly distribution of $0.4883
- Payable Dec 31; for shareholders of record Dec 27; ex-div Dec 23.
On the actual last trading day of 2021, US stock markets opened mostly in higher levels, ignoring mixed data of today, focusing on positive market sentiment ahead of New Year's Eve. Next week also will be a short-end week, while most of the big players will be off for holidays, therefore it is the last real trading day of the year with all players on in the market.
With more scientific evidence that the latest dominant strain of the Covid-19 viruses is significantly less dangerous than previous strains and it is the beginning of the covid-19 life-end, positive sentiment in the market, leading the bulls in the charts. The latest published data from the U.K., Denmark, and South Africa in the last 48 hours have all confirmed that omicron can bring Herd safety and it is warmly even welcomed.
On the data front, after yesterday's great and positive data, today's US data were a bit mixed. According to the published data personal spending in November, grew only 0.6% (monthly), much less than earlier in the year, and it shows that inflation on one hand and the lack of government support checks, weighing on markets. We could see the same results in durable goods in November, with a 0.1% drop.
On the inflation front, while yesterday's published data from the third quarter showed that inflation a little bit eased from second quarter sharply raise, in November the Fed's preferred measure of inflation (PCE price index) also rose by 0.6% on the month, more than 0.5% of estimates, but less than 0.7% of last month. With overall positive data of this week, today the benchmark 10-Year the US. Treasury yield passed 1.50% for the first time in 10 days in response and now also is about the same level.
With overall positive data and increasing main and leading stocks in the market, Dow Jones industrial average is also, moving higher, eyes on new peaks. From the technical point of view also we can see this in the weekly chart. After touching its all-time high above 36,665, asset price eased, but could not breach its 50 weekly moving average at 34,100. This 50 Weekly average, as you can see in the chart, it has been a challenging level for DJI, and it is playing a very important role in its technical chart. For now, 35,300, which is its 20 Weekly average is the key support, and as long as it is trading above this level, we can wait for new records. On the flip side, only breaching under 34,100 can change the market attitude.
