US stocks rebounded

Read: 737 2020-03-30 17:29:00

Last week, US stocks rebounded.  The DJ Indices rose 12.84% in the whole week, the biggest weekly increase since 1938; The SP 500 rose 10.27% in the whole week.
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Last week, all kinds of news from US are advantageous to stock market , which made us stocks stop falling and rebound.
The fallowing are the two most important stimulus policies:
On March 23, the Federal Reserve launched an unprecedented "unlimited" asset purchase program. SP 500 change falling 4% to up raise 4% after the news. The market is optimistic about Quantitative easing of the US dollar.
On March 24, the market predicted the US government's $2 trillion economic rescue plan, and the stock market made a very positive response. The DJ Indices rose 2112.98 points, closed to 20704.91, upraise 11.37%, which is the largest one-day increase since 1933.  The SP 500 index rose 209.93 points, closed to2447.33, upraise 9.38%.

But there is still a lot of downward pressure on US stocks:
The number of initial jobless claims in the week of March 21 reached 3.283 million, far exceeding the expected 1.7 million. This is the first time in the history of the United States that a million level of initial claims for unemployment benefits have been recorded, which was 695,000 in 1982 during the world economic crisis.
On this Friday, the U.S. will also release heavy economic data such as non-agricultural employment and PMI.
Whether the U.S. rescue measures are effective, and whether the U.S. government will take further measures will have an important impact on the future trend of U.S. stocks.


In technical analysis

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The market is in a fragile state, the high point keeps falling and the shady line swallows up the front several lines.
Due to the instability factor of market data and the epidemic situation has not been effectively controlled, it is not recommended to enter the market.
Or we can take short positions with DJ 30 & SP 500 at current price.

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