A strongly bullish opening is expected on Wall Street, these are the factors to consider.
1- After the very serious drops yesterday we have the typical rebound, which is based on technical analysis.
The SP 500 touched the psychological 3,000 yesterday and the average of 200 stopped there and the rebound has been mounted from there. It is vital to see if it supports this average or if it suffers new attacks again.
2- The overbought and the bubble are responsible for the fall and not that Powell was more or less pessimistic as it is being said. It was unsustainable. The put call ratio has passed the levels that warn that the weakness is serious at the moment, so you have to be quite cautious until you see what happens in the coming days.
3- The strong increase in virus cases in some states of the USA has negatively influenced. In Houston, a new closure of the economy is being considered after the contagion situation has become more complicated, they are breaking records of virus cases.
Mnuchin said yesterday that the economy will not be closed if contagions pick up.
4- Some experts believe that the bearish attack, which does not come only from yesterday, since in the previous days many papers were also seen, is an attempt to corner the rain of bullish positions in options that individuals have in view of the expiration of next week quarterly.
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5- JP Morgan says that this year when the SP 500 has fallen one day, 5% on average recovers 70% before continuing with the decreases, which would give it a 4% rebound potential from 3000, although of course this is an average, it is not always true.
6- Most investment banks are saying that they see no downside danger. We think it is premature, after such a hard fall.
7- Bank of America Corp, Citigroup Inc and Morgan Stanley, rise strongly in pre-opening.
Boeing Co was up 6.2% but was still headed for a 17% drop this week. United Airlines, American Airlines, Norwegian Cruise Line rose approximately 9% and 11% after major losses on the S&P 500 on Thursday.
Adobe rises 4.5% after giving better-than-expected results
Lululemon Athletica Inc fell 3.3% after posting lower-than-expected quarterly revenue and earnings due to store closings due to the virus