For the first time since February 12th, Dow and S&P 500 futures saw gains for two consecutive sessions. While this is a positive signal for many traders, much of yesterday’s gains were pared before the close.
A major contributor to the 2-day rally, Boeing (BA) closed up 24% Tuesday, accounting for more than a third of the Dow’s advance. Conversely, although the Nasdaq was up as much as 2.7% yesterday, it fell behind the other indexes late in the day and finished lower.
A wave of bullish sentiment hit markets early yesterday after a US Senate vote sent a $2.2 trillion coronavirus stimulus package to the House of Representatives. However, investor confidence slipped late in the session as the passage of the bill hit a snag. Despite the delay, many expect the House to approve the stimulus package Friday.
This morning markets are carrying the momentum of Tuesday & Wednesday’s rally, but the big question on traders’ minds is, “Can we make it 3 days in a row?”
The chart above, created for FREE using the NinjaTrader platform, shows price activity for Micro E-mini S&P 500 futures since the beginning of February. The 50-day SMA recently crossed below the 200-day, a bearish signal known as a death cross.
Traders should always keep risk management top of mind when trading unpredictable markets and take appropriate measures to protect investment capital.
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