Are the strong gains seen last night in the markets hinting that the stock market correction has ended?
Stock Markets Technical analysis update
US Stocks rose yesterday after the release of strong quarterly results helped the market recover from last week's sell-off.
Dow Jones surged more than 500 points, S&P 500 gained up more than 2 percent, Nasdaq advanced almost 3 percent.
major large-cap indexes all had their best day since March.
Yields spiked at an unexpectedly fast rate, prompting worries about a sudden acceleration of inflation and more aggressive Federal Reserve interest rate hikes.
We just need to pay attention to One more important thing: it's 2018 midterm elections in the USA this November 6th -The key question in these elections is: will Republicans will be able to keep control of both chambers of Congress?
If the Democrats take over and be a majority, then there will be a problem for President Trump, and this will weaken him and will prevent from advancing and implementing his plans Instead, winning the majority of the seats by Republicans will ensure his strength, and his ability to continue on the way to carry out his plans.
That's why I think we will not see big moves in the stock market until the results of these elections are confirmed, which means that by this date, the stock markets in the US will move sideways
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| Market analysis |
Market highlights from the beginning of the year :
in January this year, I talked about the upcoming correction in the markets - it comes to the big drop earlier this year –was expected!
Technical analysis
One can see the clear convergence, which was one of the declines that began in January an examination of the level of resistance, buyers versus sellers is reflected well on the price graph of the index In my opinion, in May, the beginning of the real recovery can be seen very well. What now? As I said, and from the technical perspective, the level of support can be clearly seen in the previous peak area at the beginning of the year, main support level stays in 24,800+- point area in the DOW JONES and 6800+_ points area in the NASDAQ - those are key points. The continuation of moving up above 26,200+_ price area will confirm that the correction is over and creating new highs is on the way
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| Dow Jones chart |
The long-term forecast could suggest even more upside on the index - last February post shows very interesting ideas
This review does not including any document and / or file attached to it as an advice or recommendation to buy / sell securities and / or other advice
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