Traders reacted with euphoria on Monday when Pfizer announced that their Covid-19 vaccine was strongly effective and the results exceeded expectations. An 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 received a placebo. Some experts have warned that if the vaccine is to have a real effect, it should reduce serious illness and death. However, we don't yet know if this vaccine does that.
The rally was boosted by weekend news that Joe Biden had won the presidential election. The Trump administration has announced legal challenges, but it is unclear if there is a way to reverse the current vote totals in the states.
All major indices rose and closed in the green, except the NASDAQ Composite Index. The Dow Jones Industrials closed 2.95% and the S&P 500 1.17% higher. The U.S. dollar rose and closed at its highest level in three weeks against the yen, where it hit a wall of double resistance. The downtrend line and the previous peak (A) caused the dollar to bounce down from the 105.64 level. If the dollar still had momentum to the upside, it would have to contend with two more resistance levels (B, C). If the resistance at level A proves to be strong and sends the price down, the next level of support would be the previous low at 103.20.