On analysis of the movements of S&P 500 futures in different time frames, I find that the news of $2 trillion stimulus package will provide support. it appears that it has already been factored in the current moves; while the Dow rose 2.39%, or 495 points, marking its second-straight session of gains for the first time since Feb. 5-6. The Dow had been up more than 1,000 points intraday. The S&P 500 rose 1.15 %, but the Nasdaq Composite fell 0.45%.
Although, the ‘phase 3’ package of support measures for the U.S. economy moves to the House of Representatives, after the Senate finally approved the $2 trillion bill by a reassuring 96-0 vote; but S&P 500 futures have show an exhaustion since Wednesday. I find that the Jobless claims to show extent of economic damage from pandemic; which may extend the bearish pressure in S&P 500 Index on Thursday.
I find that the heavy selling pressure in SPX above the level of 2562 may result in the gap-down opening of S&P 500 Index; and a sustainable move below 2424 may push the SPX below the level of 2347 up to this weekly closing.
S&P 500
S&P 500 Futures
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