E SP500: Ongoing Consolidation May Not Be Over Yet

The US yields are higher, while the US dollar and stocks were mixed after final US presidential debate that seemed to be a lot more civil affair than the first one.

Stocks did not move much, they remain trapped in a consolidation but we see the SP500 trying to reverse up from the first 3400-3430 support from where we may get more upside especially on any positive news regarding the coronavirus US stimulus deal later today. 

But rthe real threat to higher stocks and risk-on in general, is the spreading coronavirus cases across the globe, so the whole consolidation since the beginning of September may not come an end just yet.  It can be ongoing triangle meaning more unclear direction until we have A-B-C-D-E subwaves in place.

If the market see a dip today, then the next support for the current drop stands at 3313-3351 area as shown on the chart below.

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.

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