Investors are now more cautious about the direction to take to Wall Street, and the fact that technically the situation is “asking” a break from the Bulls is not to be dismissed, because not only is the stochastic indicator already in overbought values, but also mainly the S&P500 is touching the 50-day moving average. For the first time since the start of the falls, this being the first major zone of resistance to further climbs. Another important point is the economic and business data that came out in the USA, which are not positive. Largest drop in retail sales ever, a very important topic for sentiment, contraction of industrial production by -5.4%, against the -3.4% expected, air traffic at historic lows, global losses of $ 314 billion 2020 revenue (IATA) for airline companies due to COVID, and yesterday’s statements by James Bullard (President of the Federal Reserve Bank of St. Louis), about a daily cost of $ 25 billion to the US, relating to health crisis.
In the front of the results, the banks, despite in some cases having had a strong increase of revenues in the component of trading and investment banking, the latter sector reached a record volume, they have not been optimistic results, since the companies have already started to include provisions for probable losses resulting from containment measures, which makes financial companies today the second most affected group with selling pressure, losing almost -4%, behind energy sources that fall more than -5%, given As Crude continues to lose value ignoring the historic agreement to reduce production reached between OPEC +, black gold continues to yield -1.5% to $ 19.81 a barrel, after having devalued almost -8% on Tuesday.
