June 15, 2020, 6:08 pm EDT
Battlefield Between Bulls and Bears
Battlegrounds between bulls and bears were intensified as DJIA moved from more than-700 to up more than +200 and finished with +157 points. Let’s see who are bulls and bears:
- Bulls: Fed is definitely the strongest fighter in Bull’s camp. Buying into corporate bonds during intra day mews saved and changed near trouble index. Having unlimited US dollar power applied on corporations and potentially more stimulus for the economy, those are very powerful weapons to keep boosting stock markets from sliding down further.
- Bears: COVD-19, job market, protests. It is well-known that the US is still struggling with viruses, death tolls, job recovery and spread of racial activities. It is hard to imagine how long stock markets can ignore all these problems.
From a technical point of view, Nasdaq is used as reference because it is the leading index among S&P and DJIA. Gap down below 10,000 terminated straight-up 3-month rally. As long as Nasdaq is pressed by the gap, default bias is on the down side. Pullback support or rebound target is the mid points 8400 between 10000 and 6600. Early description on downtrend channel can be seen on dash lines.
