In the last two weeks, the S&P 500 essentially chopped around the range established after the Fed nuclear option (buying junk bonds) announcement. Underneath the three indices, there are vastly different performing sectors reflecting the new Covid-19 driven economy and the related stock performance.
On April 9th, the Fed announced that they will extend credit to banks that issue PPP loans, purchase up to $600 billion in loans issued through the Main Street program to medium-sized firms. The moves also involve secondary corporate credit facilities that will allow the Fed to buy corporate bonds from “fallen angels” that have
Last Tuesday the market gaped up at open and hit the S&P 500 known resistance level 2750. Immediately it retreated and produced an intraday sell signal. The intraday sell signal was confirmed at the close by it closing at the low of the day. The next day should be followed with a new bearish trend when the Tuesday’s low of the day
Last week the S&P 500 and Nasdasq both took out the previous week’s high, but were sold off immediately after the high was made on Tuesday March 31st. The Dow didn’t even take out the previous week’s high and it closed on the weak side on the weekly chart. This mixed picture points to a sideways to
