SPX500 got supported for a few days from the support line we drew. Today SPX500 wasn’t able to keep the support and dumped for 1.86% in a day. Technically, the next support line will be 3320, which was tested by SPX500 for about 7 times from August until now. Also Dow Jones faced its biggest decline in the past 7 months.
Let’s take a look at the fundamentals.
1.The number of confirmed cases of Covid-19 reached another peak. The fear and uncertainty to the Covid-19 rises. What’s more ,the pandemic spread widely among countries and suburbs, with the winter comes closer and closer, the pandemic may threat Americans’ health severely and cause great fear to the markets. 25 October, Trump made a speech and passed the buck to the medical system, saying that America’s reporting system not doing right, and that made the cases of America so high. AMA and ACP contradicted Trump’s words officially.
Also, Mark Meadows, White House Chief of Staff told CNN”We are not going to control the pandemic. We are going to control the fact that we get vaccines, therapeutics and other mitigation areas.”
2.The stimulus plan is still nothing right now. And market seems to react to it because Pelosi’s and Mnuchin’s optimistic words failed again and again. The negotiations seems still need some time to settle. There are still lot of conflicts between the two parties. Also, Larry Kudlow, White House Economic Advisor said Trump can’t accept many Pelosi’s issues about the stimulus plan. The uncertainty of the market increases.
3. With the VIX rises above 30, I think the VIX will continue to rise and put more down pressure to the stock markets. Also the fundamentals of the U.S society and economy aren’t that good, it may be a good oppotunity to short the U.S stock markets since it has lost support technically and the uncertainty of the market rises fundamentally.
4. Bitcoin also slightly dumped along with the stock markets. Right now it slightly rises and back to the uptrend support. I still remain bullish on Bitcoin technically since it still rises back to its uptrend support.Also, these days Bitcoin seems to be decoupling with SPX500, so maybe we can expect it continue.
Let’s take a look at the fundamentals.
1.The number of confirmed cases of Covid-19 reached another peak. The fear and uncertainty to the Covid-19 rises. What’s more ,the pandemic spread widely among countries and suburbs, with the winter comes closer and closer, the pandemic may threat Americans’ health severely and cause great fear to the markets. 25 October, Trump made a speech and passed the buck to the medical system, saying that America’s reporting system not doing right, and that made the cases of America so high. AMA and ACP contradicted Trump’s words officially.
Also, Mark Meadows, White House Chief of Staff told CNN”We are not going to control the pandemic. We are going to control the fact that we get vaccines, therapeutics and other mitigation areas.”
2.The stimulus plan is still nothing right now. And market seems to react to it because Pelosi’s and Mnuchin’s optimistic words failed again and again. The negotiations seems still need some time to settle. There are still lot of conflicts between the two parties. Also, Larry Kudlow, White House Economic Advisor said Trump can’t accept many Pelosi’s issues about the stimulus plan. The uncertainty of the market increases.
3. With the VIX rises above 30, I think the VIX will continue to rise and put more down pressure to the stock markets. Also the fundamentals of the U.S society and economy aren’t that good, it may be a good oppotunity to short the U.S stock markets since it has lost support technically and the uncertainty of the market rises fundamentally.
4. Bitcoin also slightly dumped along with the stock markets. Right now it slightly rises and back to the uptrend support. I still remain bullish on Bitcoin technically since it still rises back to its uptrend support.Also, these days Bitcoin seems to be decoupling with SPX500, so maybe we can expect it continue.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.