Hello Traders,
The ES 500 Mini futures hit a new all time high during the US Elections and currently trading above the $5900 area. The elections have confirmed the 47th president of the United States, Donald Trump after accumulating over 277 electoral votes against 224 for Kamala Harris. Needless to say after the political uncertainly last week, the main US Index SP500 futures market namely the ES500 trading at all time highs after maintaining support from the near term cycle from 05.08.2024 ahead of the upcoming FOMC meeting due tomorrow, November the 7th.
The Federal Reserve tomorrow is expected to cut rates by at least another 25 basis points according to most analysts expectations as last week only a 12k new jobs have been created for October in the monthly Nonfarm payroll’s data with however a stable unemployment rate maintaining the 4.1% mark. Rate cuts provide more optimism amongst investors as well as would be interesting to see whether we see another surprise from the Fed by another bigger rate cut such as 50 bps like we saw September 18th at the prior meeting.
ES500 Mini Futures Daily Timeframe Technical Outlook – Potential Targets Near Term
As we can see we have a trend based Fibonacci extension area between the first swing up from 05.08.2024 and the pullback from September between the $5949 – $6289.75 which is the 100% – 161.8% extension area. The RSI trendline suggests that the cycle remains intact and the momentum remains bullish near term with the price potentially reaching higher into the 1.618 extension area.
The overall price action appears to be forming a bullish leading diagonal and a potential breakout might be of greater magnitude to possibly reach the mentioned target areas. The upcoming potential rate cut should support the view and traders should anticipate the remarks from the Fed’s chairman Jerome Powell during tomorrow’s meeting at 19:30 GMT.
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