Sat, Nov 28, 2020 @ 07:59 GMT
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DOW lost -650 pts on triple whammy of stimulus, coronavirus and elections

US stocks were knocked down by triple whammy of stalled stimulus talks, record coronavirus infections, and election uncertainties. Traders are clearly reducing risk exposures. DOW closed down -650 pts, or -2.29%, at 27685.38. The break of 55 day EMA should now confirm rejection by 29199.35 resistance on the prior up move. Corrective pattern from 29199.35 should have started the third leg. Deeper fall is likely towards 26537.01 support for the near term. That might happen even by the end of the week if selling intensifies.

Break of 26537.01 could complete a double top reversal pattern. But we believe the key support lies in cluster at 24971.03, which is close to 25000 psychological level, and more importantly 38.2% retracement of 18213.65 to 29199.35 at 25002.81. This level is not expected to be tested before the result of the election is cleared. It’s more of an indication of overall reactions to the results. So, watch out… next week.

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