I find that the S&P 500 futures saw a big fall, despite attempts to keep the markets stimulated over the past few weeks. It finally tumbled on March 9th, 2020 which may continue the currently prevailing exhaustion until there is a permanent breakthrough to stop the spread of COVID-19. Although policymakers have started to act aggressively to prevent an economic crisis and the S&P 500 Futures reversed from the lower levels seen on Tuesday, fears dominate and the virus has still completely disrupted the global supply chain and may continue some more time.
Crude was also supported by hopes for a settlement to the price war and potential U.S. output cuts, although analysts warned gains may be temporary as oil demand continues to be hit by the virus outbreak, which has spread beyond China and prompted Italy to implement a nationwide lockdown. But, I find that the growing hopes may see a sudden set-back, if the current scenario of global supply-chain remains unchanged during this month.
Finally, I conclude that despite repeated attempts by the S&P 500 futures to break immediate resistance at 2929; continued sell-offs make the situation far scarier than ever before, which may encourage bears to remain more aggressive above the level of 2989. I find that only a sustainable move by the S&P 500 futures on March 10th, 2020, above the level of 3030; may provide some strength to growing hopes for steep bounce during this week.
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