Analysis

Premium analysis by our dedicated team
NDAQ
Nov 3, 2020, 11:57 AM GMT
#Indices

The Nasdaq Torn Between Bears and Bulls Ahead of the Election Results

Just mere hours before the election results from each separate state start pouring in, the stock market is at an impasse. Yesterday, tech stocks were able to recuperate slightly following a massive plunge last week, which is a sign of resistance from the market bulls. Nevertheless, the continuation of the bullish rally is still very much in question.

Depending on who wins tonight, the Nasdaq is likely to react in slightly different ways. If its Biden, the index could continue fluctuating in a narrow range, possibly extending the bearish correction in the near future. That is so because of his tax plans for the wealthy, and the general perception of how such bigger taxes could impede the stock market's performance.

Such downbeat reactions to a Biden presidency are highly unlikely to persist for too long, as he has been leading steadily in the polls since April. This means that the market has had enough time to price the longer-term implications of a democratic administration at the White House. Moreover, the accommodative monetary policy stance of the FED coupled with the robust economic performance that has been observed recently – manufacturing and durable goods orders - should continue to support the stock rally.

Profit & Loss
Short Term Long Term Net % Gains
+ - + -
791 BPS 0 258 BPS 0
9.13%
Short Term
+ -
791 BPS 0
Long Term
+ -
258 BPS 0
Net % Gains
9.13%

Disclaimer: Your capital is at risk! Trading and investing on the financial markets carries a significant risk of loss. Each material, shown on this website, is provided for educational purposes only. A perfect, 100% accurate method of analysis does not exist. If you make a decision to trade or invest, based on the information from this website, you will be doing it at your own risk. Under no circumstances is Trendsharks responsible for any capital losses or damages you might suffer, while using the company’s products and services. For more information read our Terms & Conditions and Risk Disclaimer.