NASDAQ 100 (as of Feb 10, 2021 at 12.20 p.m.)
Source: Yahoo Finance
SPX 500 (as of Feb 10, 2021 at 12.20 p.m.)
Source: Yahoo Finance
US30 (as of Feb 10, 2021 at 12.20 p.m.)
Source: Yahoo Finance
Wall Street experienced a mixed day as the NAS100 rose 0.14% but the US30 dipped 0.03% and SPX 500 lost 0.08%. Taking a look at the broader market, the technology, communications, industrials, and financial sectors recorded gains, but the consumer goods, basic materials, and oil and gas sectors experienced losses.
Looking at the technical levels, the SPX500 continues trading over its 50-day Moving Average (MA), and its Relative Strength Index (RSI) stands at 35, close to an oversold position, making it an attractive time for buyers.
For the US30, it closed below its 50-day MA, with the Moving Average Convergence Divergence (MACD) indicating a bearish reversal.
The NAS100 also closed below its 50-day MA, but it spent most of the day trading above it, and its RSI stands at 42.
Meanwhile, the CBOE Volatility Index (VIX) which is also known to act as a ‘fear gauge’ increased by 0.24%. So, are the Wall Street bulls now taking a breather after a stellar performance?
Let's take a look at the sentiment in the market. Overall, there is still a sense of optimism in the market. President Biden, together with his vice-president Kamala Harris and the U.S. Treasury Secretary recently met up with Chief Executive Officers of several blue-chip companies such as JPMorgan Chase, Walmart, and Chamber of Commerce to discuss on his proposed $1.9 trillion stimulus package.
Following that meeting, the president stated his endorsement of the proposal put up by the House of Democrats to send $1,400 stimulus cheques to Americans who have an annual income of $75,000 or less. The Republicans have opposed this income requirement and have counter-proposed a lower income level. This is reflective of their concern of the overall size of the stimulus package and how it would weigh on the existing debt that America holds, which stands close to a staggering $27 trillion.
Meanwhile, in terms of Covid-19 cases, the number of new cases and hospitalisations continue to decrease in the U.S. The new Biden administration has also committed to increasing vaccine supplies by 5% over the next week. However, there are also concerns about new variants emerging, which should not be ruled out completely and could potentially wipe out any progress here, if not handled well.
In related news, Reuters reported that both Nasdaq Inc and the New York Stock Exchange (NYSE) have sued the U.S. Securities and Exchange Commission (SEC) over its plan to include supply and demand data for stocks to public feeds. Presently, this information is sold to professional traders for a price.
In the meantime, markets seem to cling desperately to hopes that the world can somehow return to normalcy soon, upon news of the progress of the Biden Stimulus Package and vaccinations. However, in a world that has forever been changed by the pandemic, we have to be prepared for a ‘new normal', that could look very different from what we were used to.
In the meantime, the important question is: Can the Wall Street bulls make a comeback over this week?
FOLLOWME User Sentiment (as of Feb 10, 2021 at 12.15 p.m.)
Short – 83.09%
Long – 16.91%
Short – 80.57%
Long – 19.43%
Short – 74.84%
Long – 25.16%
Edited 10 Feb 2021, 12:35
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