Last Friday all three indices closed down which produced a losing week, but failed to take out the 3rd daily cycle low which is needed to confirm the start of the weekly cycle high to low selling phase. This delay of the selling phase could be due to the seasonal and month/quarter ending factors. Typically the market rallies into major holidays.
We will have a short trading week next week. The month and quarter end on Tuesday. There will be some window dressing activities on Monday and Tuesday. The virus news will be negative, but the market may choose to ignore all that to finish the 4 trading days before the 4th of July holiday as long as the market can stay above the 3rd daily cycle low. For the S&P 500, it needs to stay above 2965.66 to facilitate the pr-holiday trading activities.
So 2965.66 is a critical level for the S&P 500. There will not be any legit selling if the market can stay above this level.
The S&P and Dow didn’t make new highs in the 4th daily cycle, but the NASDAQ has made a new high, so the market is still bullish even though the news is negative and there are some corrections in the re-opening trades. The airlines, oil and casino stocks have experienced corrections.
New development of KPTI:
The interim COVID-19 clinical trial update hasn’t been released from the company yet, but the report from Italy shows that Selinexor for COVID-19 has assumed benefit of 34% reduction of time to improvement. The report is only a summary, more details may be released by the company in mid July. This is a good news, it is showing efficacy.
There are many Selinexor clinical trials going on simultaneously. It is highly likely that Selinexor could be applicable to many different cancers as long as there is an over expression of XPO1. But just based on multiple myeloma and lymphoma, the two approved indications plus future expansions within these two indications, Selinexor is projected to have $2 billion annual peak sales alone. We continue to hold this position even though the market may experience correction during the 2nd half of 2020.