- The Dow tanks 2.84%, 730 points lower on Friday.
- The S&P 500 drops 2.40% and the Nasdaq falls 2.59%.
It was another tough day on Wall Street as the coronavirus pandemic continues the bite the US economy. Texas and Florida are forced to scale back plans to reopen parts of the economy as the number of cases continues to rise. The US sent out US Economic Advisor Kudlow to try and ease some of the panic and he stated every number is showing a "v shape" recovery for the US. Interestingly, this week the Fed managed to shrink its balance sheet for the second week in a row. We have not been able to say that in a while. The US could have a solution to this as Larry Kudlow the Director of the United States National Economic Council stated the US will go back to congress to look for more tools.
Facebook (-8.31%) was one of the main losers on the session as Unilever confirmed they would be taking a break from advertising on the platform. Unilever is responsible for some of the biggest brands in the world including Lynx, Walls, Ben & Jerry's and PG Tips.
American Airlines closed the week 22.75% lower after the travel sector was hit hard with all the coronavirus news. Internal flights will also be hit hard as New York imposed quarantine rules on people coming into the sate from hotspot areas.
Main COVID-19 headlines
San Francisco Mayor Breed is to delay reopenings planned for Monday as SF virus numbers are `Low But Rising Rapidly'.
US CDC reports 40,588 new coronavirus cases as of yesterday - total cases now 2,414,870 Vs 2,374,282 in previous report.
Arizona’s COVID-19 cases rise to 66,458 Vs 63,030 yesterday
Texas Governor says that bars and taverns must close immediately.
In commodities news, the Baker Hughes rig count data showed that the rate of change in terms of closures seems to be slowing. A second wave could be a problem but WTI prices around USD 40 per barrel seem to be favourable for now.
S&P 500 4-hour chart
The S&P 500 has broken the dominant trendline on the 4-hour chart below. The main support level on the chart is now the red line at 2963.50 just under the psychological 3000 level.
The Relative Strength Index indicator has already moved into the oversold area and pulled back up. Now there is still some space to move back to the downside. Analyst's that focus on Elliott Wave and Dow Theory will be watching the red support carefully as the market could make a new lower low lower high formation if the support breaks.
Therefore next week is pivotal and the NFP data and Chinese manufacturing numbers could be the catalysts for the move.
|Today last price||3019.25|
|Today Daily Change||-65.75|
|Today Daily Change %||-2.13|
|Today daily open||3085|
|Previous Daily High||3090.5|
|Previous Daily Low||3016.75|
|Previous Weekly High||3167.5|
|Previous Weekly Low||2936.5|
|Previous Monthly High||3069.5|
|Previous Monthly Low||2768|
|Daily Fibonacci 38.2%||3062.33|
|Daily Fibonacci 61.8%||3044.92|
|Daily Pivot Point S1||3037.67|
|Daily Pivot Point S2||2990.33|
|Daily Pivot Point S3||2963.92|
|Daily Pivot Point R1||3111.42|
|Daily Pivot Point R2||3137.83|
|Daily Pivot Point R3||3185.17|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.