The US stock markets gapped higher at the open on Monday, suggesting that we are ready to continue the rally after the U.S. Senate passed a form of tax reform. This of course is a very bullish sign for tax reform, and should continue to elevate markets.
Dow Jones 30
The Dow Jones 30 gapped higher at the open on Monday, as the CFD markets reacted to tax reform coming out of the U.S. Senate. We are currently hovering just below the 24,500 level, which is an area that of course has a certain amount of psychological resistance, and therefore I think we could get a short-term pullback, but I believe there’s plenty of buying pressure underneath, as the gap should be supportive. As soon as the vote comes Monday night to perhaps send reconciliation into order, the markets will probably be bullish after that as well. I believe the 24,000-level underneath is massively supportive, and essentially a “floor.”
NASDAQ 100
Unlike the S&P 500 and the Dow Jones 30, the NASDAQ 100 fell during the day, as we continue to see a lot of volatility in the sector. We are starting to cross over in the oversold part of the Stochastic Oscillator, which of course is a sign that we could start buying again. I think the 6400 level above is massively resistive, just as the 6250-level underneath is going to be massive support. The choppy action in this market should continue, and with the sudden selloff that we have seen in the NASDAQ 100, I much prefer having a long position in either the Dow Jones 30 or the S&P 500 currently, as the NASDAQ 100 tends to be a bit of an outlier when it comes to the US indices.
MORE WILL UPDATE SOON!!
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