Coronavirus? Who cares? When it appears that the democrats may have avoided the “socialist bullet” of Bernie Sander, the market jumped higher in relief. The stock market apparently views a Bernie win as a bigger threat than any virus. The move higher yesterday was a greater absolute value move than the moves lower during maximum panic last week.
The SPX jumped higher on the open by 31.01 points.
Thirty minutes after the open, the Bank of Canada duplicated yesterday's US Federal Reserve rate cut of 50 BPS. The BOC lowered rates by 50 BPS and stated that they would do more as needed.
From that point on, the market climbed, and then rested. Once strong again, the market would bounce to the next resistance area, and then it rested. This continued at ever large resistance point until panic buying came in on the close.
At the close a massive “short squeeze” and “panic buying” kicked in sending the SPX above 3100 in the SPX, and it settled at 3130 (1% higher than when stops kicked in). Think about that! The stops alone took the market up an addition 1% on just the close.
SPX closed up 4.22%
Dow closed up 4.53%
AAPL closed up 13.42 (302.74), or 4.64%.
AMD got back to $50 by closing up 3.36% (7.2%)