US stocks broke out of range overnight to extend recent record run, with DOW closing at all time high at 30046.24, up 1.54%. Investors cheered the news that former Fed Chair Janet Yellen was picked by Joe Biden as the next Treasury Secretary. Yellen’s position on loose fiscal policy was clear, as she support continuation of extraordinary fiscal support, beyond necessary. Also, as Fed’s interest will stay low for many years to come, the government can afford to have more debt.
With the current rally resumption, DOW is now close to 38.2% projection of 18213.65 to 29119.35 at 26143.77 at 30340.30. Sustained break there will be seen as a vote of confidence on the sustainability of the up trend, and pave the way to 61.8% projection at 32932.93 next. However, rejection by this projection level, would turn focus back to 55 day EMA (now at 28333.92) instead.
