Indices Remain Firm Ahead of the Midterm Elections
08 November 2022
This Tuesday is all about the US congressional elections. Ahead of the final results, the markets are quite optimistic, anticipating a Republican win. Once it’s official, stocks will most likely rally further, at least that’s what the consensus is among leading experts.
Tuesday’s also bringing us a reversal on the dollar, which isn’t happening in a random place. Yesterday the EURUSD ended slightly above parity and now sellers are trying to pull the price lower. Level 1 is definitely a good place to initiate a bearish correction.
Commodities are mostly flat with a slight advantage for sellers, especially on gold. Here, a 1680 USD/oz resistance persists and is still too much for buyers. Remember, should the price close a day above that area it would mean an amazing, long-term buy signal. Oil has already had a buy signal for some time now, but watch out for the 100 USD/bbl00. resistance on brent oil. I guess the importance may be similar to parity on the EURUSD and since the end of August, buyers are unable to close a day above that area.
Indices are flat but close to mid-term highs. We also had a good session yesterday and of course on Friday, therefore a break is needed and understandable.
After-hours trading brought us a few interesting moves, mostly to the downside. Lyft, Take-Two Interactive, TripAdvisor, all dropped around 15% based on disappointing earnings report.
Today, we’ll find out the numbers for Walt Disney, Bayer and Deutsche Post.
Lastly, we’ll close with a quick look on the Fear and Greed Index. There was a month, when we were in the extreme ‘Fear’ territory and not long after, stocks initiated a bullish bounce. Currently the sentiment is on 63/100, which means ‘Greed’. Does that mean that the bullish correction is entering final stages?