US equities are moving further into record high territory, with the Dow (USA30) and NASDAQ (USA100) 0.3% firmer while the S&P 500 (USA500) is up 0.2% in pre-market futures trading. All three indexes closed at all time high levels on Monday, (November 4) with the recent climb fueled by US-China trade optimism, upbeat earnings, vanquished recession fears and Fed easing.
Another round of upbeat US-China trade news is lifting shares today. Reportedly, the White House is considering rolling back the September tariffs, one of the Chinese demands for the deal. And President Xi said China would “open its doors only wider” to the world. China’s CSI 300 rose 0.6%, Hong Kong’s Hang Seng was up 0.5% and Japan’s Nikkei 225 rallied 1.8% as the Index caught up to the rest of the world after being closed Monday for a holiday. Europe’s bourses are more cautious, with the Euro Stoxx rising 0.3% after posting a record high close Monday, the DAX (GER30) 0.1% firmer and the UK’s FTSE 100 (UK100) having improved 0.3%.
Technically, the USA100 broke and breached the 20 and 50-day moving averages on October 11 (17 trading days ago) and remains biased to the upside. RSI (67) is still rising and has yet to register in the overbought zone. The MACD histogram also breached the 0 line on October 11, with the signal line following on October 18 as the histogram gained momentum. R3 is now at 8310 whilst S3 sits at 8100 with a key support zone at 8025-8000.
Click here to access the Economic Calendar
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.