Technical Analyst, Saxo Bank
Summary: A technical look at the S&P 500 index charts as well as the Futures market heading into today's New York bell.
Short-term and intraday
We see an interesting symmetrical triangle pattern on the Future/CFD US500.I intraday (one-hour) chart, so watch this for a potential breakout.
If it breaks to the upside, it could place 2,793 in view, while a downside break could clear a path to a new test of 2,700.
Short term
Daily chart: Bearish RSI divergence has been unwound by a close below 40; now we could potentially wait for bullish divergence. However, often we see a rebound and turn in the stock market without bullish divergence since the market is per its nature biased long. Bearish divergences will always result in a correction/downturn, which we also witnessed last week.
The end of the road
Emboldened by surging crude oil prices, Saudi Arabia makes waves on the international stage, as Crown Prince Mohammed bin Salman manages to create a World Champions League, after buying the UEFA Champion League franchise.
As the world embraces GLP-1 obesity wonder drugs, the people next in line to get a prescription stop caring about dieting and exercising, figuring that the drug will later solve all of their weight-related health problems.
With the US budget deficit spiraling above 10% of the GDP, the government is desperate to foster demand for US Treasuries. Under intense pressure from the White House, Congress makes income from government bonds tax-free.
After a criminal group deploys the most deceptive AI deepfake ever seen, generative AI becomes a national security threat. With public distrust soaring, governments crack down with harsh new laws, puncturing the AI hype.
To fix the divergence in the global trade and financial system, the largest deficit countries unite to negotiate new world trade terms. For surplus countries, the reset of the global economic model is a painful adjustment.
As discontent with Biden and Trump rises to fever pitch, Robert F. Kennedy Jr sees his support rising inexorably in the polls. On November 5, Kennedy wins the US presidential election, ushering in a new era in US politics.
Stepping up Japan's economic transformation in 2024, PM Kishida brings in a host of populist policies to boost domestic demand. As the GDP growth rate hits 7%, the BoJ is forced to abandons its yield curve control policy.
As people wake up to how little tax Europe’s billionaires are actually paying, the EU Commission implements a wealth tax of 2%. The tax sends shockwaves through Europe's luxury industry, with luxury giant LVMH plunging 40%.
