Equities continue to set new all-time highs

USA100, Daily

US equities are moving further into record high territory, with the Dow (USA30) and NASDAQ (USA100) 0.3% firmer while the S&P 500 (USA500) is up 0.2% in pre-market futures trading. All three indexes closed at all time high levels on Monday, (November 4) with the recent climb fueled by US-China trade optimism, upbeat earnings, vanquished recession fears and Fed easing.

Another round of upbeat US-China trade news is lifting shares today. Reportedly, the White House is considering rolling back the September tariffs, one of the Chinese demands for the deal. And President Xi said China would “open its doors only wider” to the world. China’s CSI 300 rose 0.6%, Hong Kong’s Hang Seng was up 0.5% and Japan’s Nikkei 225 rallied 1.8% as the Index caught up to the rest of the world after being closed Monday for a holiday. Europe’s bourses are more cautious, with the Euro Stoxx rising 0.3% after posting a record high close Monday, the DAX (GER30) 0.1% firmer and the UK’s FTSE 100 (UK100) having improved 0.3%.

Technically, the USA100 broke and breached the 20 and 50-day moving averages on October 11 (17 trading days ago) and remains biased to the upside. RSI (67) is still rising and has yet to register in the overbought zone. The MACD histogram also breached the 0 line on October 11, with the signal line following on October 18 as the histogram gained momentum. R3 is now at 8310 whilst S3 sits at 8100 with a key support zone at 8025-8000.

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Stuart Cowell

Head Market Analyst

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