Effect of Omicron on the Financial Markets 20/12/2021

This article includes the most important updates on the new mutant Omicron, and the markets most affected by it


Preliminary research indicates that all vaccines except for Pfizer and Moderna, taking the booster dose, do not prevent infection with the omicron mutant.
Omicron prompts New Yorkers to line up in long queues for coronavirus tests


In just 23 hours, Britain recorded more than 12,000 new infections with Omicron
French Minister of Health: About 10% of new Corona infections in France may be in Omicron
Iran announces the registration of the first infection with the Omicron mutant
Omicron has spread to 89 countries so far


The mayor of London said that imposing restrictions to contain the omicron mutant is imperative to avoid a rise in cases and to avoid the collapse of service facilities
Fauci, America's top infectious disease expert, said caution should be exercised when traveling to tackle the raging omicron
Dutch Prime Minister Mark Rutte said that the Netherlands will impose a strict closure during the Christmas and New Year holidays, to limit the spread of Omicron, the closure starting from Sunday 19 December until 14 January

Most affected markets

American indexes

Nasdaq indicator

The Nasdaq indicator rebounds for the eighth time from the resistance line located at 16433.3, to retreat about 5% to enter the 15000 area.
The support area that traders have to watch is at 15300 coinciding with touching the 800 fast average.
If this price is reached, the Nasdaq will decline by about 6.92%.
Today's losses for this index are about 1.71%

Dow Jones

After the rise last week, about 5%, this index is retreating to erase half of the gains that it achieved, and it is now trading at the price of 34987, the support area that traders should monitor is at the price of 34298, coinciding with the moving average 200
Today's losses for this indicator are about 1.8%
Knowing that this indicator is industrial, that is, it will be affected by any decisions of closures that will be issued by officials

S&P500 Index

The S&P 500 index is trading at 4567, this week it fell by about 3.87% to erase the gains it made last week, and it is possible to decline to 4373.

Note: All US indices are still in a general bullish trend in the long term


Oil is the most affected, and as we have mentioned several times that oil will be affected by any negative news about the new mutagen, Omicron, such as the increase in injuries and the tightening of restrictions, that is, closures or travel bans, which will affect the quantity of demand and push prices down.
Oil still won't breach 72.70 and close above it clearly (on the daily chart)
Oil is retreating about 7.17% of the resistance at the price of 72.70
In the event that the level of 72.70 is maintained, then oil is closer to the negative scenario, and the support area for oil is at the previous bottom located at the price of 62.26