Bullish sentiment ahead of U.S election

Sell-off caused by the spike in new coronavirus cases reversed before the U.S election today. DJIA futures are currently higher more than 300 points which indicate a bullish rally. However, the bullish sentiment could change radically depending on the election result.

Traders might want to be careful trading on election day and treat the current bullish movement as a technical bounce after a series of bearish closes.

Asian & European Stock market

The Asian stock market mostly higher today. Japan stock market closed, China stock market up 45.95 points (+1.42%) to 3,271.07 and Australia ASX 200 up 115.10 points (+1.93%) to 6,066.40. The European stock market also on the path higher. DAX Germany up 1.58%, UK FTSE up 1.34%, and Euro Stoxx600 up 1.26%.

Technical Analysis

Dow Jones Industrial Average (INDU)

The downward movement of the DJIA index found support at the daily SMA 200 and the 26,000 handles. At the current time, the index has climbed near the 27,000 level. U.S election in progress which might influence the index direction. Technically, a bounce has happened and the index might continue upward until a major change in sentiment happens.

Ebay Inc (EBAY)

EBAY share prices bounced from a support level around $47.00. On the upside, we could see a bearish trendline which limits the upward movement of the share prices. It seems EBAY currently trading inside a triangle pattern between $47.00 and the trendline.

If a bullish bounce happens then traders could expect further upside to test the top trendline.