Despite most major indices opening in the red today, the Dow Jones is heading toward recording its best month since 1987, up by 13% to date. Both the SPX500 and NAS100 are also up, to date, by 11%. Vaccine developments and Biden’s success has boosted optimism as the market moves to a risk-on environment.
In major US news, Joe Biden, the 46th US president-elect, has commenced forming his future administration following the GSA’s (General Services Administration) official announcement recognizing Biden’s win. Biden’s pre-presidency duties, however, kicked-off on a rather awkward note, with news of the President-elect fracturing his foot. In the meantime, Dr. Anthony Fauci spoke with the ABC, confirming he expects a new wave of COVID-19 cases surrounding the holiday season, strongly recommending residents to travel with caution.
In major EU-UK news, Simon Coveney, Ireland’s Foreign Minister, warned fishing continues to be the hot issue surrounding Brexit trade talks, and could potentially be the downfall of the current deal. Separately, UK Consumer credit fell by £0.6bn while Mortgage Lending reached £4.3bn, lower than the forecasts in October.
In corporate news, China’s Ministry of Industry and Information Technology has granted approval for Tesla commence sales of its Shanghai-made Model Y sports utility vehicle. Airbnb and Doordash are the upcoming hot IPOs as Airbnb’s expected float to fall between $30bn to $33bn, whilst Doordash expects to float between $25bn to $28bn respectively.
Reviewing the technicals, SPX500 consolidated between 3610 and 3645 area for 3 days, while MACD started forming slight negative divergences and the index struggled to remain above the 5 EMA. Likewise, NAS100 is flirting with 5 EMA and keeps nicely following the rising trendline.
SP500 daily
NAS100 daily
Gold is under selling pressure after losing the 200SMA while it’s currently testing the 50% Fibonacci retracement level and RSI remains oversold.
XAUUSD daily
Heading to the USoil, the session opened in red ahead of the OPEC+ meeting where the produces will decide, whether or not, will extend major output cuts. Nevertheless, as long as the commodity remains above the rising trendline and 50 SMA, the bias remains bullish.
USoil 240min
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