US stocks ended mixed overnight with NASDAQ closed at another record, but DOW edged down slightly. Fed left monetary policy as widely expected. FOMC noted, “path of the economy will depend significantly on the course of the virus,” and it pledged to “be prepared to adjust the stance of monetary policy as appropriate”. The commitment to maintain accommodative policy supported overall market sentiment. Additionally, there’s optimism that Congress inched close to compromising on a USD 900B fiscal stimulus package.
NASDAQ closed up 0.50% at 12658.18. Upside momentum is relatively unconvincing as seen in daily MACD. But there is no sign of topping yet. Further rise should be seen to 61.8% projection of 6631.42 to 12074.06 from 10822.57 at 12901.65. The projection level represents an important near term hurdle to clear. Decisive break there could prompt upside re-acceleration in early part of next year. Though, rejection there, followed by 12214.73 support would mix up the medium term outlook a bit, and at least bring deeper correction to 55 day EMA (now at 11853.94) first.
