CFD Indices – US Indices Jumps Higher Anticipating A Stimulus Deal

Market News

  • U.S. stocks jumped on Thursday as investors bet Republicans would hold onto the Senate and prevent changes under a possible Joe Biden White House that would crimp corporate profits. With votes still being counted in battleground states, investors abandoned cautious pre-election positioning, driving Wall Street’s main indexes up for a fourth straight session.
  • Investor focus on Friday remained on the U.S. election with the spotlight on a few battleground states such as Arizona and Pennsylvania. Based on NBC News’ tally, Democratic nominee Joe Biden has racked up 253 electoral votes, leaving him 17 shy of the 270 needed to win the White House.
  • While investors widely expect a fiscal stimulus package, the size of a deal reached in a divided Congress is likely to be much smaller than it would be under a Democratic-controlled Congress. That could pressure the U.S. Fed to pump more funds into the financial system, supporting equity prices.

Market Views

  • Asia-Pacific shares were traded higher on Friday morning as U.S. election uncertainty remains and investors continue to wait for a result from the election. Hang Seng index gained 1 point while Nikkei 225 index surged 262 points.
  • The number of Americans filing new claims for unemployment benefits fell only slightly last week, adding to signs that the economic recovery was losing steam as the COVID-19 pandemic intensifies and fiscal stimulus ends.

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,292
Target price:
Protective stop:

Outlook
This index tested the July’s low support zone and formed an Engulfing reversal candlestick on 30 Oct, suggesting a rebound ahead. Price has penetrated above the Fibonacci 62% correction point as well as the 20EMA. The next resistance will likely be at 28,780. Stochastic is turning up at the moment and there is a bullish MACD crossover.

Trading Idea
Buy 27,950 for 28,950 with a stop below 27,510.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 25,634
Target price:
Protective stop:

Outlook
This index reached the resistance zone of 25,880, which has capped the price rally for the past two occasions. The overhead resistance point at 26,196 is also near to this resistance zone. If price is resisted at this zone, we are likely to see a correction back to test the 20EMA at 24,780. Stochastic is still turning up at the moment. MACD has turned bullish and is moving higher.

Trading Idea
Wait for a pullback to get into a long position.

Nasdaq 100 Index
(CFD Symbol: USTec)
Trend :
Recommendation :
Last : 12,012
Target price :
Protective stop:

Outlook
Price hit the declining trendline that formed since 2 Sept. This is the third time that price hit this trendline resistance. The previous high is also near to this trendline resistance. We are likely to see a price correction towards the 20EMA at 11,580 if it is resisted by this trendline. Stochastic is rising at the moment. There is also a bullish MACD crossover.

Trading Idea
Wait for a pullback to get into a long position.

S&P 500 Index
(CFD Symbol: US500)
Trend:
Recommendation:
Last: 3495
Target price:
Protective stop:

Outlook
This index is now trading near to its previous high resistance at 3549. If price could not break through this resistance, a pullback towards the 20EMA at 3408 is likely. Stochastic is rising from the oversold region at the moment. MACD is bullish at the moment, and there is a bullish MACD crossover.

Trading Idea
Wait for better trading idea

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