NASDAQ PRICE OUTLOOK: STOCK MARKET STILL VOLATILE AS TRUMP CONTESTS ELECTION RESULTS POINTING TO BIDEN PRESIDENCY
- Nasdaq[1] exploded nearly 10% higher this week as stocks soar in the wake of the US election[2]
- The tech-heavy equity index has started to slip from recent highs as Trump refuses to concede
- Stock market volatility[3] could linger owing to the risk of a contested election, COVID-19 fears
The Nasdaq has staged a massive rally over the last few trading sessions in the aftermath of election night. With challenger Joe Biden looking set to claim victory over incumbent Donald Trump, and prospects of a split congress squashing fears of higher corporate taxes, investors have pushed major stock indices[4] notably higher this week. Nasdaq price action surged almost 10% from last Friday’s close while the S&P 500[5] and Dow[6] both gained about 7% a piece. This coincided with a sharp slide in the US Dollar and breakout in gold prices[7].
NASDAQ PRICE CHART: DAILY TIME FRAME (07 JUL TO 06 NOV 2020)
Chart by @RichDvorakFX[8] created using TradingView[9]
However, the tech-heavy Nasdaq is starting to stall as President Trump refuses to concede despite election votes tipping the scales against him across key battleground states, such as Georgia and Pennsylvania. Biden winning electoral college votes from those states should solidify his presidential bid, but lawsuits filed by the Trump campaign could drag out the official election outcome and cause uncertainty to linger[10].
Nasdaq price action also seems to be struggling at its bearish trendline[11] extended through the 02 September peak and lower swing high notched on 13 October. This area of technical
