CFD Indices – US Indices Higher On Biden’s Victory

Market News

  • Wall Street held near the unchanged mark on Friday to close out a strong week, but each of the three major indexes still managed to notch their biggest weekly percentage gains since April, in part due to the belief Congress will remain divided even as control of the Senate is still undecided, while the monthly jobs report underscored the hurdles still facing the economy.
  • Biden’s victory in Pennsylvania on Saturday put him above the 270 Electoral College votes needed to secure the presidency, four days after Election Day, although President Trump does not plan to concede anytime soon. President-elect Joe Biden was declared the winner on in a highly contentious election.
  • A fiscal stimulus package to combat the economic damage done by the coronavirus is also less likely to be broad. While U.S. Senate Majority Leader Mitch McConnell last week indicated he desired a bill by the end of the year, he said on Friday that economic statistics show Congress should enact a smaller plan.

Market Views

  • Shares in Asia Pacific surged, oil prices jumped and the dollar stayed weak on Monday morning as expectations of fewer regulatory changes and more monetary stimulus under U.S. president-elect Joe Biden supported risk appetite. Hang Seng index jumped 347 points and Nikkei 225 index gained 520 points.

Business sentiment of Japanese manufacturers and service-sector firms was the least pessimistic in nine months in November, likely as the world’s third-largest economy showed signs of pulling out of a coronavirus-induced recession, a Reuters poll showed on Monday

Dow Jones Index
(CFD Symbol: US30)
Trend :
Recommendation :
Last : 28,687
Target price:
Protective stop:

Outlook
This index has been rising sharply after being supported by the July’s low support zone and formed an Engulfing reversal candlestick on 30 Oct. It is going to test the overhead declining trendline resistance, which is also near to the previous high resistance zone of 28,950-29,160. Stochastic is turning up at the moment and there is a bullish MACD crossover.

Trading Idea
Buy 28,450 for 29,000 with a stop below 28,300.

Hang Seng Index
(CFD Symbol: HK50)
Trend :
Recommendation :
Last : 26,131
Target price:
Protective stop:

Outlook
This index opened with a rising window today, bringing price above the resistance zone of 25,880 that had capped price rally twice, and to test the Fibonacci 161% projection level. As long as price can maintain above the resistance zone of 25,880, which is also the gap support, there is chance for this index moving higher towards 26,960. Stochastic is still moving 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 : 12,374
Target price :
Protective stop:

Outlook
Price broke above the declining trendline that formed since 2 Sep with a rising window today. It penetrated the previous high resistance of 12,257 as well. As long as this index can stay above the declining trendline, which is also the gap support, there is chance for this index moving higher. The next resistance lies at 12,467.  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: 3564
Target price:
Protective stop:

Outlook
This index has now penetrated above its previous high resistance of 3549. It is going to test the next resistance point at 3588 if it able to stay above the gap support that created today at 3516. Stochastic is rising from the oversold region at the moment. MACD is also bullish now, and there is a bullish MACD crossover.

Trading Idea
Buy 3550 for 3600 with a stop below 3515

Related Posts

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.