Mixed sign in Wall street after the increases on Tuesday. Very important for technical analysis, the S&P 500 during the session it overcame the important resistance of the 3,000 points, but it turned downward in the final section and closed at 2,991 integers, after an intraday high at 3,021. And something similar happens this Wednesday (it is trading at 3,011 after an intraday high at 3,021).
Furthermore, the Nasdaq it rose to 9,501 points, very close to its all-time high of 9,838, but closed at 9,340. The selective technological, which has led the rally since the March lows, is showing signs of exhaustion and is trading flat, after falling more than 1%.
Thus, the New York Stock Exchange has reached significant resistance levels they will not be easy to overcome on a first try. Investors have already discounted the collapse of the economy and the subsequent stimulus measures of the American congress and the Federal Reserve, so it is most likely that the bags will remain in a lateral movement for the next few weeks.
The agency Fitch Ratings has maintained its fall forecast for the United States GDP in 2020 at -5.6%. The macroeconomic stimuli have increased in the last month and the liquidity injected by central banks This is an unprecedented response, which he considers positive.
However, Fitch added that “a return to economic normality is likely to be a slow and bumpy process“. The rupture of the labor market (US unemployment is expected to peak at 20% in May) and the social distancing ongoing will weigh heavily on the consumer spending after the crisis, while companies will be very cautious with the capital expenditure, he warns.
Looking ahead to 2021, Fitch has anticipated a “‘technical’ rebound in world GDP growth of 5.1%”, with an increase in production in the US and the eurozone of around 4%. “But earlier levels of the virus are unlikely to be reached until mid-2022 in the US and significantly later in Europe despite massive political stimulus. “
COMPANIES AND OTHER MARKETS
In business matters, Amazon is testing the purchase of Zoox to increase its commitment to autonomous cars.
Further, Disney It is news because it has submitted to the authorities a plan for the reopening of its legendary amusement park Mundo de Walt Disney, located in Florida.
On the other hand, Twitter has unleashed the wrath of Donald Trump, one of his most famous users, warning for the first time that one of the president’s tweets contains dubious information. Trump has threatened to close social media, nothing less.
In other markets, the West Texas oil It falls 2%, to $ 33.58, after the rebound in recent days due to the forecast of a rebound in demand globally. Besides, the ounce of gold falls 1.4% to $ 1,704, while the euro 0.14% appreciates and changes to $ 1.0995, after announce the European Commission a rescue fund of 750,000 million euros. Finally, the profitability of 10-year American bond It rebounded slightly to 0.69%.
On a technical level, the S&P 500 has significant resistance in the “weekly bearish gap of 2,972 points“, an area that has been acting as resistance since the April highs. The main world indicator has closed at 2,991 points. Clearly exceeding (above 3,050 points) this resistance would open the way to seek again its historical maximum for February, in 3,393.50 pointsBut not doing so may mean a new downward stretch in the short term.