(DAILY NOTION): Wall Street Bulls Struggle to Maintain Control, Next Mover: Biden Stimulus Package

NASDAQ 100 (as of Feb 11, 2021 at 11.20 p.m.)

Source: Yahoo Finance

SPX 500 (as of Feb 11, 2021 at 11.20 p.m.)

Source: Yahoo Finance

US30 (as of Feb 11, 2021 at 11.20 p.m.)

Source: Yahoo Finance

Over on Wall Street, the US 30 gained 0.2% while the NAS100 fell 0.25% and the SPX 500 dipped 0.03%. The mixed day was reflective of gains in energy stocks while consumer stocks suffered losses.

Looking at the technical levels, the SPX500 closed below its 50-day Moving (MA) and the Moving Average Convergence Divergence (MACD) is showing a bullish reversal. Similarly for the NAS100, the MACD ended the day pointing towards a bullish reversal while the price is moving close to trading above its 50-day MA. For the US30, the price closed above its 50-day MA and the Relative Strength Index (RSI) was gradually moving upwards and closed at 51.

The markets paid attention as Jerome Powell, the Chairman of the U.S. Federal Reserve (Fed) spoke yesterday. His statement included the importance of maintaining an accommodative monetary policy. However, his concerns over the U.S. employment being a ‘long way’ from where it needs to be, and the actual employment rate is closer to 10% did not bode well in the market and led to a risk-off sentiment in the market.

He further pointed out that those in the lower-income category suffered more than those on the higher tier, employment in the bottom quartile dropped by 17%, as compared to the 4% decline in the top tier.

Furthermore, the latest January core Consumer Price Index (CPI) came in at 1.4% year-on-year, compared to 1.5% in December. On a monthly basis, the core CPI came in at 0, against a forecast of 0.2%. In terms of inflation, Powell has stated that until the inflation rate reaches 2% or more, the Feb will maintain its current policies. The Wall Street’s fear gauge rose to 23.85 points, a one-week high. Can a positive update from the Biden Stimulus progress change this?

As the week is reaching an end, the Wall Street bulls appear to be struggling to maintain its control. With the increase in risk-off sentiment, will this make way for the bears?

FOLLOWME User Sentiment (as of Feb 11, 2021 at 11.40 a.m.)

SPX500

Short – 81.58%

Long – 18.42%

NAS100

Short – 77.52%                

Long – 22.48%

US30

Short – 79.37%

Long – 20.63%

#BidenStimulus#