US Market Technicals Ahead (28 Dec – 31 Dec 2020)

Stocks were lower for the week, as coronavirus continued to escalate, with 330,000 deaths across the US and almost 19-million cases reported. Risk-off could continue into the upcoming trading week, notwithstanding the US government’s vaccination drive. As of Friday, more than 1 million Americans were inoculated, and it has been the underlying tailwind for stocks and launched the cyclical rotation.

Markets will start the upcoming, holiday-shortened week weighing the pros and cons of Trump’s unexpected stimulus shakeup which meant that employment benefits for millions of Americans ended on Saturday and a partial government shutdown could begin on Tuesday if there’s no further movement on enacting the bill.

*Update: Global shares edge up on news Trump signs aid bill

Here’s what you need to know to start your week.

S&P 500 (US Market)

The benchmark index ( $SPX ) were lowered -0.66% (-24.5 points) during the week. With S&P500 remains trading within a 3% trend channel range established since 10th November, the technical strength of the market remains bullish for a continuation rally towards 3,750 level in the upcoming week.

The immediate support to watch for any signs of weakness is at 3,660 level, an initial break of the trendline support.