- U.S. stock market surged on Tuesday, where Dow Jones gained 554 points, as Wall Street bet an unusually rancorous U.S. presidential election would be decided without a prolonged process, clearing the way for a deal on fiscal stimulus to help the struggling economy.
- Democratic candidate Joe Biden’s lead over Republican President Donald Trump in national opinion polls has raised expectations of a decisive outcome and a post-election stimulus package that would make good on Biden’s promises of infrastructure spending.
- Democrats, who already control the U.S. House of Representatives, are also favoured to emerge from 14 hotly contested U.S. Senate races with full control of Congress, although final results from at least five of those contests may not be available for days, or months in some cases.
- Asian shares followed the overnight rally in Wall Street to turn higher on Wednesday morning as results from the U.S. presidential election showed an astonishingly close race with no clear winner yet in sight. Nikkei 225 index rose 481 points while Hang Seng index was up 14 points.
- The Reserve Bank of Australia on Tuesday cut interest rates to near zero and boosted its bond-buying program, adding to the tidal wave of cheap money flooding the global financial system.
Dow Jones Index
(CFD Symbol: US30)
Last : 27,676
This index tested the July’s low support zone and formed an Engulfing reversal candlestick on 30 Oct, suggesting a short term rebound ahead. Price is now going to test the Fibonacci 62% correction point at 27,850, which is the key resistance at the moment. Once price able to penetrate 27,850, we could see price moves towards the previous high at 28,950. Stochastic is turning up now and a bullish MACD crossover is likely.
Wait for better trading idea
Hang Seng Index
(CFD Symbol: HK50)
Last : 24,892
Price was supported twice at the Fibonacci 50% correction point of the Sept-Oct’s rally. The 20EMA is rising at the moment, suggesting a bullish trend now. The next resistance lies at 25,500, if price can hold above the gap support zone at 24,420. Stochastic is still strong and could be turning up again. MACD has turned bullish
Buy 24,700 for 25,120 with a stop below 24,400.
Nasdaq 100 Index
(CFD Symbol: USTec)
Recommendation : Short
Last : 11,651
Target price : 10,700
Protective stop: 11,500 triggered
There was a strong rally this morning that brought price higher to test the Fibonacci 62% correction point at 11,760, the key resistance for the rally. Once price penetrates above this resistance, we are likely to see higher target at 12,250. Stochastic is at the oversold region and is turning up now. A bullish MACD crossover is likely in the coming session.
Sell 11,280 for 10,700 with a stop above 11,500. Stop was triggered on 4 Nov.
S&P 500 Index
(CFD Symbol: US500)
Target price: 3340 Filled
Protective stop: 3200
A hammer was followed through after a spinning top candlestick that formed last Thursday. A bullish candle was followed through the next day, confirming the reversal pattern. Price is now testing the Fibonacci 62% correction point at 3428. The next resistance lies at 3549. Stochastic is rising from the oversold region. A bullish MACD crossover is likely.
Buy 3240 for 3340 with a stop below 3200. Order was filled on 30 Oct. Profit order was filled on 3 Nov.