Price Levels:

3,364.92 Pivot Point

3,354.62 38.2% Retracement From 4 Week Low

3,354.10 38.2% Retracement From 13 Week Low

Investors place their final pre-election bets as both President Trump and Democratic nominee make their final blitz at key battleground states. The conviction behind the bets are small considering no one can say for sure how the next 48 hours will unfold. Much of Wall Street is still preparing for a blue wave that explains the October outperformance with many of the beaten sectors and the struggle with big-tech. It is easy to make the argument that one has to be bullish stocks regardless of the election outcome: The Fed is keeping rates near zero and they will likely be one of the last central banks to raise rates. The race for a COVID vaccine and treatments should have some winners in the next couple of months and that should provide optimism that the global economic recovery will only get better starting now.

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Although Florida loves Trump, Biden inches closer to 270 required majority votes. Final results will take two more days, increased uncertainty can favor USD. Although Trump’s victory in Ohio offers a tough fight to the Democrats, his rival Joe Biden has 223 votes versus 270 required for a win, which in turn keeps the global markets hopeful of a blue wave. Traders cheer hopes of heavy stimulus if the Democratic Party dominates the US Congress amid mixed clues.

Risk barometers like S&P 500 Futures and the US 10-year Treasury yields fizzle the recent upside momentum. Monthly trade numbers from the US and Canada will join the American ADP Employment Change figures for October to offer intermediate moves.

Levels To Look For:
Daily Fibonacci 38.2% 1.3154
Daily Fibonacci 61.8% 1.3185

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