(DAILY NOTION): Disappointing U.S. Data Takes a Toll on SPX500 and US30, NAS100 Beats This Trend. Next Mover: U.S. Stimulus Package and Data, New Covid-19 Strain

NASDAQ 100 (as of Dec 23, 2020 at 3.25 p.m.)

Source: Yahoo Finance

SPX 500 (as of Dec 23, 2020 at 3.25 p.m.)

Source: Yahoo Finance

US30 (as of Dec 23, 2020 at 3.25 p.m.)

Source: Yahoo Finance

Both the SPX500 and US30 closed lower today while the NAS100 bucked this trend and closed higher. The US30 dropped 0.67% and the SPX500 fell 0.21%. The NAS100 was up 0.51%.

The market was impacted by the disappointing U.S. data. Both consumer confidence and sales of pre-owned U.S. homes declined. Traders will be keeping an eye out for upcoming U.S. data.

NAS100’s high close was pumped by Apple Inc’s performance. Apple Inc’s stock rose upon news that the company plans to roll out an electric passenger vehicle by 2024.

Analyst estimates that U.S. equities are in an overbought condition and cautions of a consolidation heading into the first quarter of 2021.

Analyst also opine that the overall sentiment is weak with a near-term demand for safety on the cards.

The U.S. Dollar index has shown a strong negative correlation with SPX500. As the U.S. Dollar rises, would this put a cap on the stock market’s rally?

In terms of politics, Donald Trump is currently threatening not to sign off on the stimulus deal. Will the relief over the finalisation of the stimulus deal be a short-lived one?

Another market mover would be the spread of the new Covid-19 strain. The discovery of this new strain is casting a shadow over vaccine distributions.

Mostly, both of these factors are leading many to wonder if the Santa Rally be coming to town this year?  

FOLLOWME User Sentiment (as of Dec 23, 2020 at 3.29 p.m.)

SPX500

Short – 78.64%

Long – 21.36%

NAS100

Short – 76.89%

Long – 23.11%

US30

Short – 74.79%

Long – 25.21%