Concerns about sluggish economic growth amid the ongoing pandemic continue to dominate the financial markets. The Dow Jones Industrial Average and S&P 500 indices had their fourth straight weekly declines, the longest weekly losing streak since August 2019.
The Nasdaq Composite index advanced on a weekly basis after falling the previous three. U.S. indices are also pressured by the fact that Congress will not approve additional fiscal stimulus.
“We think it is now clear that Congress will not attach additional fiscal stimulus to the continuing resolution. This implies that after a final round of extra unemployment benefits that are currently being disbursed, any further financial support will likely have to wait until 2021,” analysts said.
Despite this, there is no reason to panic and all three indices still remain in a bull market.
S&P 500 down 0.6% on a weekly basis
S&P 500 (SPX) had its fourth weekly drop in a row and closed the week around 3,298 points. S&P 500 is pressured by uncertainty about additional coronavirus stimulus from Washington, rising cases of coronavirus and a stall-out in some components of economic data.
When we take a look at the chart above ( one year period), we can see that the S&P 500 has advanced from 2,191 points to 3,588 and after that started to fall. As long the price is above this trend line this index is in the “buy” zone and there is no indication of the trend reversal.
If the price falls on the trend line and if we get a “bullish” confirmation candle it would be a very good entry point for short-term traders who are trading with “stop-loss” and “take
