The “everything goes up” rally is resuming on Wall Street today as US stock futures are indicating a greater opening during the European futures trading session following Joe Biden’s triumph in the race for the US presidency.
E-mini futures of the S&P 500 are leaping 1.44% at 3,551 up until now in the session, likewise to those of the Dow Jones, while futures of the tech-heavy Nasdaq 100 index are up 1.78% at 12,122 as the marketplaces resume their positive tone from last week.
European markets are likewise trading greater this morning as the world responds favorably to Joe Biden’s win– regardless of Trump not yielding to the outcomes yet– with the Italian FTSE MIB broad-market index increasing 2%, following by the German DAX and the Spanish IBEX 35 which are up 1.7% and 1.8% respectively.
US stock futures have published gains in five out of the past 6 sessions after rebounding highly off their October lows– following the reintroduction of lockdowns in Europe and as market individuals braced for higher levels of volatility resulting from a possibly objected to United States election result. That stated, markets actually responded positively to Trump’s refusal to acknowledge the outcomes.
This positive efficiency has been mostly fueled by the prospect of a gridlock in US Congress, which means that Democratic lawmakers will likely deal with strong opposition from Republicans to pass any meaningful expenses– specifically one concerning potential tax hikes.
” A Biden presidency with a Republican Senate would be not likely to see any boost in taxes, which was probably the greatest worry investors had about a Biden presidency” Brian Levitt, international market strategist for Invesco, informed CNBC throughout an interview this morning.
Meanwhile, on the infection front, cases in the North American country keep surging to all-time highs, with more than 130,000 contagions reported last Friday– the greatest day-to-day tally given that the outbreak began– while the number stayed above the 100,000 mark throughout the weekend.
Moreover, the variety of hospitalized patients, as reported by the COVID Tracking Job– a site created by The Atlantic– rose to almost 57,000 and keeps approaching levels just seen throughout the peak of the very first and second wave in April and July this year.
What’s next for United States stock futures?
United States stock futures start …
S&P 500 E-mini futures (ES) price chart– 1-day candles view with volume, RSI, and MACD– Source: TradingView
Today’s early gains are pressing S&P 500 futures above an upper pattern line that goes back to the index’s September all-time highs– with the benchmark trading at close range of that milestone since today.
This break might result in further gains if market participants choose to keep riding this wave of positive sentiment, although a substantial number of dangers are looming in the backdrop, consisting of a potentially out-of-control infection situation in the United States.
On the other hand, from a technical perspective, the index’s ability to move above its all-time high would determine if this bull run is set to last, or, it might result in a possible double-top development that may lead to a sharp short-term pullback.
With that in mind, traders should keep an eye on a bearish divergence in both the RSI and the MACD, which shows that the momentum is not as strong as it was back then.