Vaccine news has been dominating market commentary over the last couple of days but softer U.S Retail sales are putting a slight damper on the economic recovery outlook.

Global Indices were weaker at the start of trading on Wednesday from weaker than expected U.S Retail sales data renewing fears that the rising COVID-19 infections could still mute the recovery.

The Wall Street 30 Technical Analysis

The current weakness on the Wall Street 30 (WS30) and other major Indices could be profit taking when considering the solid 10 day run the markets have been enjoying. The U.S Retail sales data should be revisited after the holiday season to get a clearer picture of the state of the economy before all is declared doom and gloom.

The Wall Street 30 outlook is still positive as industrials have been favoured above “Tech” and we have adjusted our levels of interest on the Wall Street 30 accordingly.

• The price action on the WS30 needs to stay above the 28902-support level which could also support the triangle technical breakout from last week.
• The 50-day SMA (blue line) is pointing higher and below price which supports a move higher.
• The Relative Strength Index (RSI) is approaching overbought levels.

Chart Source: Wall Street 30 Daily Timeframe  - GT247 MT5 Trading Platform

Take note: The outlook and levels might change as this outlook is released before the current days (Wednesday the 18th of November 2020) U.S Market open.

Sources – MetaTrader5, Reuters

Barry Dumas | Market Analyst at GT247.com

Barry has 12 years experience in the financial markets. He enjoys educating clients on trading / investing and providing punchy technical analysis on securities. He currently holds a Wealth Management qualification and is studying towards becoming a Chartered Market Technician® (CMT) designation holder.

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Any opinions, news, research, reports, analyses, prices, or other information contained within this research is provided by Barry Dumas, Market Analyst at GT247 (Pty) Ltd t/a GT247.com (“GT247.com”) as general market commentary, and does not constitute investment advice for the purposes of the Financial Advisory and Intermediary Services Act, 2002. GT247.com does not warrant the correctness, accuracy, timeliness, reliability or completeness of any information which we receive from third party data providers. You must rely solely upon your own judgment in all aspects of your trading decisions and all trades are made at your own risk. GT247.com and any of its employees will not accept any liability for any direct or indirect loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on the market commentary. The content contained within is subject to change at any time without notice.