Listen to the latest market mood for the S&P500.

The S&P500 should find dip buyers on the news of a US Democrat blue sweep.

This increases the chances of a larger US stimulus package now that the Democrats have control of all of Congress. This should provide support for US stocks. One key technical level to look for is any return to 3743 which is a strong intraday support level.

However, a key risk to this outlook would be any comments from the Fed which indicate a more hawkish Federal Reserve policy outlook.

Trade Risks:

  • The main risk to this trade is from any talk of a US taper to the bond purchase programme.
  • Another risk is if the COVID-19 vaccine is shown to be ineffective.
  • The sharp rise in US 10 year yields can sometimes spook equity markets.