Investing.com | Sep 30, 2020 12:08
The chaotic US presidential debate on Tuesday has put a disorderly transition of power centerstage, denting US futures on Wednesday, including the Dow, S&P, NASDAQ and Russell 2000, and European stocks. Still, Treasuries and gold fell, and the dollar gained.
All four major US contracts were down at the time of writing, paring as much as a 1.3% decline after the acrimonious dual between President Donald Trump and former Vice President and Democratic candidate Joe Biden, in which Trump warned of widespread voter fraud, albeit without any real proof, especially with mail-in ballots.
Shares in Europe fell, with the Stoxx Europe 600 Index opening lower, as the continuing spread of COVID-19 and the ugly display of American politics came on the heels of months of paralysis in Congress on attempts to launch a second economic stimulus package to offset the damage that the coronavirus pandemic has ravaged on US economic growth.
In a mixed Asian session earlier today, Indian indices, the Nifty and Sensex 30, as well as the South Korea's KOSPI and Hong Kong's Hang Seng were bright green regional lights. However, it’s impossible to miss the obvious setup for a plunge of the India benchmarks, as both indices are forming tops.
The Sensex is forming a H&S top, with the 200DMA shaping a natural neckline and the 50DMA pressuring the price toward a downside breakout.
The global equity rebound that found momentum toward the end of September fizzled yesterday, ahead of the US presidential debate.
During Tuesday's Wall Street trade the S&P 500 fell, dragged down by more than two thirds of the index's listed stocks.
The benchmark slipped after finding resistance by the 50 DMA for the second day. That moving average realigned with the bottom of a rising flag, suggesting the preceding three-day rally was a return move that may have ended, sending prices back toward the 100 DMA and the September lows.
Yields, including for the 10-year Treasury note, have fallen—demonstrating a bullish view by investors who sold Treasuries.
However, rates remains below the 50 DMA—having formed a natural neckline for a H&S top—for the second straight day. The last time that happened, yields fell within an inch of 0.5%, testing the March record low.
The dollar rose with yields, attempting to render the preceding two-day selloff a completed return-move to the bottom.
The greenback has been taking on the falling channel since the March top. Indicators suggest enough juice for a topside breakout.
It is also raising the odds of a completed corrective rally—represented by the 100 DMA—after the symmetrical triangle’s downside breakout—represented by the 50 DMA. The 200 DMA support the long-term uptrend. The momentum-based ROC and RSI demonstrate the struggles between the short-term downtrend and long-term uptrend.
Technically, the contract may have blown a bullish pennant or is still developing a bullish flag. Bulls hold on to hope, as the price found support from the 200 DMA. Our bet, however, is with the much larger, preceding bearish rising wedge.
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.
More content, faster quotes and charts, and a smoother experience is available only on the App.