As the drama of the Presidential election wears off and the challenges facing a Biden White House become clear, I would not be surprised to see the heat coming off this rally, states Ian Murphy of MurphyTrading.com.
I would also not be surprised to see the rally continue and go on to make new highs. In short, nothing about this market would surprise me. At the open in the US, European stock market indices are positive, but they remain rangebound on weekly charts.
The CAC40 in Paris is back in the neutral zone after last week’s recovery, but it continues to trend sideways since it entered the zone in June. The DAX in Germany was more bullish, but recently lost its mojo as the 21EMAC turned red and it is currently neither bullish nor bearish.
London continues to struggle with rising Covid cases and a Brexit problem, which refuses to go away. Both have weighed on the FTSE 100 since June and the index has been slowly, but steadily trending down ever since.
In the US, E-mini futures opened in a positive mood overnight and were up an average of 1.5% by 06:30 ET until they exploded upwards at 06:45 ET when Pfizer announced a 90% success rate for its vaccine. The Russell 2000 is particularly bullish as Main Street will most likely benefit first from an effective vaccine rollout.
Learn more about Ian Murphy at MurphyTrading.com
