What’s in Today’s Report:
- Why Did Stocks Drop 10% Yesterday? (It Wasn’t Coronavirus)
- What Makes It Better (Four Factors)
- What Makes It Worse (This Is Important)
- Key Support and Resistance Levels to Watch
Futures are sharply higher as stocks rebound from yesterday’s historic collapse.
Most of the morning rally is just a typical oversold bounce, although there is a lot of “chatter” that global governments are planning to unveil economic stimulus plans over the weekend.
In the U.S., expectations are rising for an economic stimulus plan to be announced as early as this morning. This needs to happen by the open on Monday and the plan needs to be substantial, because as we explain in the issue, this crisis has morphed into a crisis of confidence in Washington’s ability to support the economy, and that’s the real reason stocks went into free fall yesterday.
Today all eyes will be on Washington, because the market is expecting a substantial economic relief package from Congress, and if we don’t get one by Monday (or it’s small and ineffectual) then we should all brace for more volatility.