The stock market started the day with significant gains but quickly retreated as cases of coronavirus continue to spike in the states of Florida, Arizona, and California. On top of that, the WHO (World Health Organization) reported this afternoon that the pandemic has entered what WHO Director-General Tedros Adhanom Ghebreyesus termed “a new and dangerous phase” as daily Covid-19 cases hit record highs.
Despite the turn lower at the end of the week, all three major indexes will post weekly gains, their fourth straight week of gains. The S&P 500 will post a weekly increase of +2%, while the DOW will check-in at +1%. The NASDAQ has the largest weekly gain standings at +3%. Reason for the weekly gains, a record surge in U.S. retail sales, and the Federal Reserve announcing it will buy individual corporate bonds.
Crude oil briefly traded above $40 a barrel, capping an incredible comeback from trading in negative territory. Crudes gains can be directly correlated to the continuing OPEC+ cuts. Earlier this month, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, agreed to extend cuts of 9.7 million barrels per day to July and monitor compliance to those reduction efforts monthly.
Gold continues to disappoint as it’s stuck in the mud. There’s been no real movement as it sits around the $1,700 level, failing to either breakout to the upside or make a move lower. Gold will post its second-week gains triggering a new green weekly Trade Triangle, indicating that a move higher could be on the horizon.
Much like gold, Bitcoin has been relatively quiet. However, it will post back to back weekly losses to trade right about the $9,300 level.
Key Levels To Watch Next Week:
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
