Wall Street closes within a sea of green, and Trump didn't seem so 'blue' after all

• Wall Street makes an impressive gain following the outcome of the US midterm elections and now focus turns to the FOMC. 
• The risk remains skewed to the upside for DJIA as the index is also above all of its moving averages.

The stocks markets have been on fire and as far as Wall Street went, it was a sea of green despite a wave of Blue hitting the White House.

• Trump's Mid-Term Election press conference fresh rolling comments: We will work together with Democrats

Trump sounded upbeat in his address today where he was questioned over the results and markets took it as a green light to press on and recover from the recent rout, with the benchmarks now recouping losses all the way back to the 61.8% Fibos of their declines in a retracement. 

The Dow Jones Industrial Average DJIA was up over 500 points by the end of the day, extending its rise even after news that Jeff Sessions had resigned as attorney general and was being replaced by his chief of staff Matthew G. Whitaker. The index climbed 544 points, or 2.1%, to settle at 26,179 for the preliminary basis which is the best close since Oct. 9th's impressive rally - putting the index above its 61.8% retracement and 50-D SMA. The S&P 500 index got over its 200-D SMA and 61.8% Fibo making for the best day in about three weeks, ending the day 2.1% higher at 2,813 and back above the psychological level at 2,800. The Nasdaq Composite Index ended with a 2.6% gain to 7,570, marking its best day since Oct. 25th. The removal of the uncertainties of the elections has given the benchmarks a boost ahead of the FOMC tomorrow where no changes are expected ahead of an anticipated rate hike in December. 

FOMC outlook:

The FOMC started its two-day meeting today and will issue its post-meeting statement at 19:00 GMT tomorrow. (There will be no Summary of Economic Projections (SEP), and this will be the last FOMC meeting without a post-meeting press conference).

• FOMC expectations: risk is for a modest dovish market interpretation - TDS

Analysts at TD Securities expect that the November FOMC meeting should pass without much market impact, as the Fed should remain on track for another hike in December but not signal any change in policy.

DJIA levels

• Support levels: 26,120 26,073 26,020.
• Resistance levels: 26,217 26,269 26,325.

From a technical point of view, Valeria Bednarik, Chief Analyst at FXStreet explained that the DJIA retains a strong upward momentum after the market closed, given that not only it recovered above all of its moving averages in the daily chart, but also technical indicators head sharply higher at levels last seen early October, when Wall Street collapsed on the back of soaring yields:

"In the shorter term, and according to the 4 hours chart, the risk remains skewed to the upside, as the index is also above all of its moving averages, and with the 20 SMA accelerating its advance, while technical indicators have stabilized at extreme overbought levels, rather signaling decreasing volumes at the end of the day than upward exhaustion. The index is roughly 350 points away of trimming October's losses."