Positive sentiment after Trump administration starts a transition to Biden

U.S stock market has traded positively as Joe Biden won the election. Previously, the transition not happened as Trump did not admit his loss. However, the market could rejoice today as Trump finally start to transition his administration to Biden.

DJIA futures currently higher more than 200 points and suggesting further upside. Vaccine news also adds more promising development as AstraZeneca reported its vaccine efficiencies of 70%.

Asian & European Stock market

The Asian stock market mostly higher. Japan stock market up 638.22 points (+2.50%) to 26,165.59, China stock market down 11.67 points (-0.34%) to 3,402.82 and Australia ASX 200 up 82.50 points (+1.26%) to 6,644.10. The European stock market on the path higher. DAX Germany up 0.87%, UK FTSE up 0.74%, and Euro Stoxx600 up 0.62%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index maintains the bullish pressure at the start of the week. The index is currently set to test the 30,000 resistance level as the index futures area higher more than 200 points. As long as there is no breakout, traders will continue to observe the situation and hold long positions in equity.

Estee Lauder Companies (EL)

EL share prices fell after it reached as high as $259.77. We could see the share prices overshoot above its top trendline. It seems the share prices will consolidate between the two trendlines shown on the chart. Traders could use the bottom trendline or the daily SMA 50 as a support level to enter long positions.

Progressive Corp (PGR)

PGR share prices have a horizontal support level of around $90.00 where it is expected to bounce and continue higher. At the current time, the share prices are trading between the $90.00 handle and the trendline. Traders could continue to hold the long positions and add more positions when the share prices manage to move lower toward the daily SMA 200 or the level around $85.00.