Wall Street Close: Mixed session, dipping into the close on COVID-19 bill hold-ups


  • S&P 500 unofficially closed up 27.20 points, or 1.11% , at 2,474.53.
  • DJIA unofficially closed up 470.34 points, or 2.27% , at 21,175.25.
  • NASDAQ unofficially closed down 31.35 points, or 0.42%, at 7,38 6.51.

US Benchmarks were bid for all of the day on Wednesday until the last hour, with the DJIA and S&P 500 posting their first back-to-back gains since Feb. 12 as investors awaited unprecedented government spending packages, expecting the stimulus to pass imminently. However, signs of a fight between Sen. Bernie Sanders and GOP senators over unemployment aid threatened to delay coronavirus stimulus weighed on US stocks into the close. 

Consequently, the three major benchmarks closed well off their intraday peaks. The Dow Jones Industrial Average ended higher by 495 points, or 2.4%, at 21,200, well below its 22,019.93 high. The S&P 500 index added 28 points, or 1.2%, at 2,476, while the Nasdaq Composite Index closed 0.5% lower at 7,384. 

Wall Street losing its biggest bid

Investors are waiting for the fact to drop, but there were signs that the news was already being priced in. While the stimulus is most welcomed, with the legislation likely to include direct financial payments to many Americans of $1,600, as well as loans to businesses, it should not be forgotten that the market has just lost its biggest bid - corporate share buybacks.

The stock markets are showing signs of stabilisation with a historic bounce. However, if 2008 and 1987 are anything to go by, this should b a warning that there could be much more downside yet to come.

Trying to catch a falling knife in this volatility with a COVID-19 health crisis exploding in the US, with no cure or vaccine on the table, makes for a dangerous strategy. It is especially worrisome when considering the prospect of an impasse in the Senate, jeopardising the prospects of a quickly approved legislation, which is urgently required in order to make direct payments to Americans, loans to small and larger businesses and resources to States and hospitals to fight the outbreak.

DJIA levels

DJIA

Overview
Today last price 21146
Today Daily Change 264.00
Today Daily Change % 1.26
Today daily open 20882
 
Trends
Daily SMA20 23244.9
Daily SMA50 26701.12
Daily SMA100 27433.63
Daily SMA200 27066.5
 
Levels
Previous Daily High 20902
Previous Daily Low 19004
Previous Weekly High 21950
Previous Weekly Low 18896
Previous Monthly High 29586
Previous Monthly Low 24690
Daily Fibonacci 38.2% 20176.96
Daily Fibonacci 61.8% 19729.04
Daily Pivot Point S1 19623.33
Daily Pivot Point S2 18364.67
Daily Pivot Point S3 17725.33
Daily Pivot Point R1 21521.33
Daily Pivot Point R2 22160.67
Daily Pivot Point R3 23419.33

 

 

 

 

 

 

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