Before the possible victory of Trump in the upcoming US election next week, the US stock market may continue to rebound, but for Citigroup's strategists, a resounding victory for the Republican Party would be a sell signal.

Trump's victory is generally seen as good news for the stock market, as his proposal to lower corporate taxes may benefit company profits. However, Citigroup's strategists believe that the 'almost feverish sentiment' driving the S&P 500 index to rise for the sixth consecutive month has created the right time for a pullback.

Citigroup strategist Scott Chronert wrote in a report on October 29: 'Given our expectation of a red wave in the US election (referring to a resounding Republican victory), there is still uncertainty, we tend to believe that any post-election rebound will weaken.'

The rise that pushed the US benchmark stock indices to historic highs was mainly driven by economic growth and corporate profits, with recent gambling market shifting towards betting on Trump's victory playing a role. However, Vice President Harris's potential tax-raising policies are considered relatively detrimental to the stock market. Nevertheless, most major polls show the two presidential candidates in a dead heat.

People believe that the most favorable scenario for the stock market would be a resounding Republican victory, whereby Trump takes over the White House while the Republicans also secure a majority in the Senate and the House of Representatives.

However, ckn holdings insists that the policies of both candidates will gradually have a negative impact on the stock market fundamentals. The strategist stated that the s&p 500 index appears to be "fully valued" at current levels. He said that any selling resulting from Harris' victory and congressional division would be a buying opportunity.