Joe Biden seems on the verge of winning the White House in the current presidential campaign
Biden’s victory is likely to result in a massive relief package to support equities
A break over 3600 dollar opens the door for a journey to 3725 dollar
The S&P 500 rose another 2.5% today to a weekly gain of about 8% overall as Joe Biden appears to be one step away from the White House.
Fundamental Analysis: Biden on the Edge of the White House
Joe Biden has come one step closer to winning the White House in the current presidential election campaign, as election officials in several key states have counted the votes. Just two days after the polls closed, President Donald Trump invoked electoral fraud without presenting any evidence to support the allegations and initiated legal action and demanded recounts in the race.
The battle boiled down to a very close race through five U.S. states. Democratic candidate Joe Biden was slightly ahead in Nevada and Arizona, while President Trump lost his leadership in the critical states of Pennsylvania and Georgia after the inclusion of absentee and postal votes. Trump is also the leader in the key state of North Carolina.
Market research and exit polling firm Edison Research gave Biden a 243 vote lead in the electoral college, compared to 213 votes for Trump. Other data providers said Biden had triumphed in Wisconsin, which, if true, would give him an additional 10 votes. A candidate must win a total of 270 votes to become president.
As the race became tighter and the chances of a congressional stalemate increased, investors became more optimistic that passing some key legislation would be a challenge, so US stock market futures traded slightly higher on Wednesday night.
S&P Emini futures rose 0.1%, continuing their rally from yesterday’s trading day, while Nasdaq 100 Emini futures rose 0.5%.
“Even if Joe Biden wins the presidency, it looks like we will have a split Congress, so the chance of any meaningful fiscal change is pretty slim, and that is what is being priced in at the back of the market today,” said David Joy, chief strategist at Ameriprise Financial.
Technical Analysis: Stocks Scream Higher
The S&P 500 rose nearly 2.5% to $3529, making up for the losses of the past three weeks. A bid gain should lead to a massive relief package that will support the equity markets.
S&P 500 Daily Chart (TradingView)
In the event that buyers are able to break through a number of lower highs, a move above $3600 would pave the way for a journey to the next major resistance at $3725.
Joe Biden is one step closer to winning the U.S. presidential election after the votes have been counted in several key states. Futures contracts for the U.S. stock market rose slightly today as circumstances surrounding the current election suggest a lower risk of regulation.