$DIA, $SPY, $QQQ, $RUTX, $VXX

The DJIA rallied 7.7% to start the trading week. Sentiment was boosted by encouraging signs that the COVID-19 outbreak may be improving.

The DJIA (+7.7%) and Russell 2000 (+8.2%) set the pace, followed by the NAS Comp (+7.3%) and S&P 500 (+7.0%).

The positive bias was formed overnight in the futures trade when data out of Europe showed countries reporting fewer coronavirus-related deaths, pointing to the US following a similar path.

A slowdown in the growth rate of new US coronavirus cases is helping put a floor under stocks and dampen volatility, according to a note today from JPMorgan Chase & Co.

The Cboe Volatility Index (VIX) has been tracking data associated with the global spread of cases and has shown a relationship with growth at the US state level.

The VXX is at 41.86 after hours, a buy signal in my quiver.

The number of states with growth rates above 20% dropped to under 10 from over 40 in the past 2 weeks, a trend which could keep pressure on the VIX and moderate any equity declines as it continues.

The JPMorgan analysts expect the 2,100’s level to hold on the S&P 500, serving as a floor for the market this Quarter. They see 2,750 to 2,850 capping the rally over the frame.

Those encouraging signs provided the market some relief that contributed to a broad-based, and steady, rally with the major indexes finishing just off of their highs. 

Monday, the major US stock market indexes finished at: DJIA +1627.46 at 22679.99, NAS Comp +540.15 at 7913.23, S&P 500 +175.03 at 2663.68

Volume: Trade on the NYSE came in at 1.4-B/shares exchanged

• NAS Comp -11.8% YTD
• S&P 500 -17.6% YTD
• DJIA -20.5% YTD
• Russell 2000 -31.8% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral with a Bullish bias,

Looking Ahead: Investors will receive the JOLTS – Job Openings report for February and the Consumer Credit report for February Tuesday.

Have a healthy day, stay home, Keep the Faith!

  Bullish, coronavirus, DIA, floor, investors, Neutral, QQQ, rally, RUTX, sentiment, SPX, SPY, stocks, sunlight, VIX, VXX

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HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

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