(Daily Notion): SPX500, NAS100, US30: Is the Bull Taking a Breather? Next Mover: Brexit Outcome, Santa Rally, Tesla

SPX500 

Source: Yahoo Finance

NAS100

Source: Yahoo Finance

US30 

Source: Yahoo Finance

The SPX 500 declined 0.35% at close of the week, while the NAS100 dipped 0.07%. The US30 declined 0.41%. Futures both the SPX500 and US30 showed muted gain upon news on the finalization of the US stimulus deal

Analyst estimate that the overall market liquidity throughout the last two weeks of 2020 will be thin and choppy. For the SPX500, a level to watch out for continues to be 3,600. However, given the lower liquidity, analyst predict that the level will most likely be moving sideways. However, if it moves below the 3,600 level, there will be plenty of support at the 3,500 level.

Overall, there are also analysts who are getting jittery about the market being overheated and a pullback might be on the cards.

A key market mover would be the outcome from the Brexit negotiations which have been keeping investors on their toes for quite a while now.

While the last two weeks of the year is associated with the Santa Rally, where markets usually move upwards – in this unprecedented year, there are analysts who are questioning if the Santa rally will be slightly more subdued this year.

The cyber-attack on the US and rising number of coronavirus cases dampen investor sentiment to a certain degree.

For the SPX500, a certain degree of volatility can be expected from Tesla’s inclusion into the index.

FOLLOWME User Sentiment (as of Dec 21, 2020 at 4.20 p.m.)

SPX500

The overall sentiment of FOLLOWME traders shows a total of 75.74% is leaning towards short selling, while 24.26% leans towards a long position.

NAS100

The overall sentiment of FOLLOWME traders shows a total of 79.59% is leaning towards short selling, while 20.41% leans towards a long position.

US30

The overall sentiment of FOLLOWME traders shows a total of 72.55% is leaning towards short selling, while 27.45% leans towards a long position.