U.S. stock market expected to be range-bound until November elections, with support at 200-day moving average

From Investing.com: 2024-08-24 04:27:02

Wells Fargo analysts predict the U.S. stock market will remain range-bound until the November elections, stuck between key support at the 200-day moving average (5,044) and resistance at the 50-day moving average (5,452). The recent decline was driven by weak economic data, central-bank policy divergence, and yen short positions unwinding. While in an uptrend, significant moves are unlikely due to geopolitical uncertainty and economic outlook.

Dynamic investors can find opportunities within the range-bound market suggested by Wells Fargo. Trimming positions in emerging-markets and certain sectors if the market moves up, while adding U.S. equities and specific sectors if the market declines towards support. The S&P 500 should find support at the 200-day moving average, but resistance at the 50-day moving average is expected, urging a cautious approach until the elections.



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