SP500 (04/07/2020)- Breaking the resistance line???
FA
+ Trumps said, "There is light at the end of the tunnel" - Yes, this is true. However, it's more about the vaccine trial rather than the COV-19 cases. There are several trials for Cov-19 vaccine across the globe and this is not new. In order to make a good and safe vaccine (apply to all including the elderly), scientists will spend at least 18 months (including trials). After that, it will take more than 3 months to deploy the vaccine. They can push the process faster, but, it won't be safe for everyone. He was not mentioning this during the Conference. Until then, we hope.
+ Trump said "Cases has peaked" - Partially correct. This only apply to New York. Please check the data from John Hopkins University. From Fri-Sat: 27621 new cases, Sat-Sun: 26065, Sun-Monday: 37188. We will expect to have at least 1 or 2 more weeks before peaking.
+ Uncertainty behind Oil Production cut deals.
+ FED can't buy securities at the moment because they're waiting for Congress approval.
+ Citigroup, JP Morgan, Goldman Sach are expecting a 50% GDP drop globally and 74% Earning Per Share drop. 84 corporations has already announced negative earnings on SP500.
+ Wells Fargo, Bank of America, Chase has shut down their portal for SBA Loans due to conflicts between them and the Government SBA department. Basically, the banks want to have service fees (they can't approve loans for free), however, SBA wants the opposite.
+ Stimulus checks: confirmed delay. Some folks will have to wait until September.
Reason why the stock went up:
+ People have hope that the market will come back after Sunday evening conference (mostly from Trump's statements).
+ Institutional buy
+ Some stocks are already down 80%-90%: These deals are irresistible, opening room for buyers.
+ Most the people are going short: as soon as they give up their short positions, the stock goes up (Buy to cover).
TA
Orange: Stock will make a drop for a sustainable bullish trend. It is very important for the market if people hope for a good recovery. RSI and Squeeze indicator will dip and prepare for another bullish day. Potentially breaks the SP500 current ceiling (Blue)
Stock must take a dip in the future for a strong bullish trend. Otherwise, still in bearish.
Overall: Open low in the Open, Close high (very likely). There is not any reason for a strong sell-off.
Good luck
+ Trumps said, "There is light at the end of the tunnel" - Yes, this is true. However, it's more about the vaccine trial rather than the COV-19 cases. There are several trials for Cov-19 vaccine across the globe and this is not new. In order to make a good and safe vaccine (apply to all including the elderly), scientists will spend at least 18 months (including trials). After that, it will take more than 3 months to deploy the vaccine. They can push the process faster, but, it won't be safe for everyone. He was not mentioning this during the Conference. Until then, we hope.
+ Trump said "Cases has peaked" - Partially correct. This only apply to New York. Please check the data from John Hopkins University. From Fri-Sat: 27621 new cases, Sat-Sun: 26065, Sun-Monday: 37188. We will expect to have at least 1 or 2 more weeks before peaking.
+ Uncertainty behind Oil Production cut deals.
+ FED can't buy securities at the moment because they're waiting for Congress approval.
+ Citigroup, JP Morgan, Goldman Sach are expecting a 50% GDP drop globally and 74% Earning Per Share drop. 84 corporations has already announced negative earnings on SP500.
+ Wells Fargo, Bank of America, Chase has shut down their portal for SBA Loans due to conflicts between them and the Government SBA department. Basically, the banks want to have service fees (they can't approve loans for free), however, SBA wants the opposite.
+ Stimulus checks: confirmed delay. Some folks will have to wait until September.
Reason why the stock went up:
+ People have hope that the market will come back after Sunday evening conference (mostly from Trump's statements).
+ Institutional buy
+ Some stocks are already down 80%-90%: These deals are irresistible, opening room for buyers.
+ Most the people are going short: as soon as they give up their short positions, the stock goes up (Buy to cover).
TA
Orange: Stock will make a drop for a sustainable bullish trend. It is very important for the market if people hope for a good recovery. RSI and Squeeze indicator will dip and prepare for another bullish day. Potentially breaks the SP500 current ceiling (Blue)
Stock must take a dip in the future for a strong bullish trend. Otherwise, still in bearish.
Overall: Open low in the Open, Close high (very likely). There is not any reason for a strong sell-off.
Good luck
Comment:
US Debt is reaching 24 trillion, Actual Unemployment is set at 14 million. Source: usdebtclock.org/
Comment:
Bull Trap Confirmed!