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US Market Technicals Ahead (7 Dec – 11 Dec 2020)

CURRENCYCOM:US500   S&P 500
The US stock market reopens tomorrow, entering into the second week of December. Many market participants would probably look forward to their socially-distanced holiday gathering without wild swings to worry about.

The benchmark index rallied a further 1.4% (+50.9 points), breaking its all time high on friday’s trading session. The same applies to all the remaining 3 major indices (Dow Jones 30, NASDAQ Composite 100 and Russell 2000). This breakout of all time high has successfully negated the Bearish Shooting Star Candlestick Pattern (highlighted) that has been in play for the past three weeks.

At the current junction, S&P 500 is trading within a very tight 3% trend channel range established since 10th November. As market tends to go through a mid-December low; coupled with low volume trade as we are approaching the holiday season, we are likely to see minor decline during the next two weeks. This is not concerning if the decline respects within the established uptrend channel highlighted.

The immediate support to watch is 3,588 classical support level .