Midterm elections are set to drive assets
S&P500=> The index eases to 3800
BTC/USD =>The cryptocurrency falls below 20k
Disney => The stock trades 35% lower this year
S&P looks to the midterm elections
US citizens head to the polls for the mid-term elections. The results could determine the control of Congress and, ultimately, how much the Biden administration could be able to achieve in the final two years in power. Republicans are the favorites to win a majority in the House of Representatives, while the Senate is expected to be a tighter race. Should the Republicans win a majority in either chamber, the result would be a gridlocked Parliament paralyzing Biden’s agenda for the remainder of his term. Historically, gridlock has been seen as a bullish environment for stocks, with the government unable to meddle too much.
Where might the S&P500 price head to?
S&P has recaptured its 50sma and 3800, the key psychological level, which along with the bullish RSI could keep buyers hopeful of further upside. Should buyers keep pushing the price higher, 3910 the October high is the next level to capture to create a higher high and bring 4000, the psychological level, into focus. On the flip side, sellers could test support at 3745, the falling trendline support ahead of 3700 the November low.
BTC/USD falls as industry tensions rise
BTC/USD trades over 5% lower at the time of writing, falling back below 20k, after having recently risen as high as 21,800 on optimism that the Federal Reserve could slow the pace of rate hikes. Nerves surrounding the midterm elections are showing through, in addition to a reaction of rising tension between the crypto industry’s two richest executives. Binance CZ and FTX’s Sam Bank-Fried ongoing feud has also pulled Solana’s SOL token, the 11th largest crypto, sharply lower on speculation that FTX’s research Alameda could try to dump its SOL tokens to raise fresh liquidity. This comes after CZ Zhao said that he plans to sell its FTT tokens. The attacks between the two magnates come at a time when the industry has been rocked by a series of scandals, including the implosion of TerraUSD along with a string of bankruptcies among crypto lenders.
Disney Q4 earnings
Disney reports Q4 earnings today. Expectations are for subscriber growth of 38% YoY, and the streaming business is likely to remain strong amid price increases and an ad-supported tier being debuted in December. Meanwhile, Disney parks are expected to show a strong rise in revenue in the region of 39%. Still with fears of a recession growing, the parks and entertainment business could come under pressure going forward. The closure of Shanghai Park last week due to COVID cases could also be under the spotlight.
Support can be found at 94.28 (September low) and 90.70 (2022 low)
Resistance for the pair can be seen at 104.20 (50 sma) and 108.50 (November high).