In the coming holiday-shortened trading week (US Thanksgiving Thursday) stock markets are likely to remain focused on weighing the risks from the fast spreading virus and a brightening prospects of a robust economic recovery once a vaccine is widely deployed. Here is what you need to know to start your week.
S&P 500
The S&P 500 index has recently soared to record highs (3,675 level) on evidence of high efficacy rates in two experimental vaccines – from Moderna (NASDAQ:MRNA) and jointly from Pfizer (NYSE:PFE) and BioNTech. Both vaccines could be ready for U.S. authorization and distribution within weeks.
The benchmark index has currently posted its first weekly decline for November 2020, ending the week with a loss of -0.86% (-30.7 points). S&P 500 is hovering within a Bearish Shooting Star Candle established on 9th November, with the pandemic remains an immediate threat as the US recorded its 12th million COVID-19 case on Saturday, capping a series of days with record-breaking infections.
The technical strength of the market remains bullish with S&P 500 currently above the major MAs, with no significant selling pressure in the week’s correction. Immediate resistance to watch is at all time high of 3,975 level, 3.5% away Friday’s close.
SG Market
The Straits Times Index (STI) ended the week posting 3 consecutive weeks of gains, totaling +15.59% (+378 points). This phenomenal was only last witness in October 2019. STI is also currently trading above it’s 200MA for the first time since the start of the year, along with a possibility of Bullish Golden Cross of 50MA vs 200MA within the next two weeks of trading sessions.
At the current junction, STI is trading above the Major Moving Average implying persistent strength of the STI Constituents stocks. The closing of price above the current major resistance level (2,837 points) by the end of the week will see the index heading higher towards a major gap resistance zone within 2,900 – 2960 levels.
Top 3 things to watch this week:
1. FOMC Meeting Minutes
On Thursday, the Federal Reserve will publish the minutes of its last meeting with investors on the lookout for any discussion around potential tweaks to its asset purchase program.
2. Black Friday
In a normal year, U.S. shoppers would be gearing up for “Black Friday,” the traditional start of the holiday shopping season. But not this year. While growing coronavirus cases make the familiar scenes of consumers crowding into stores to snap up bargains unlikely, online orders are expected to surge.
3. Euro zone PMI pessimism
Preliminary readings of November business activity from the euro zone on Monday are expected to be dismal amid the resurgent coronavirus and the second round of lockdown measures put in place to contain it.
