The more than 20% jump from the low has many retail traders jumping for joy. That is excellent and I hope some had made good profits here !
However, I think the party is over. In 1H chart, we can see the bullish trend is broken down plus there is a gap from 18803 to 19645 awaiting to be closed. The probability is high.
Fundamentally, the US economy has not improved within this 2 days other than the confirmation of the 2 trillion dollars stimulus. Tomorrow, the jobless claims results might tell us more. I doubt this 2 trillion dollar is adequate to save US from its recession or economic woes that it is in right now.
Of course, some blame it on Sanders as part of the reason for the downfall. I think that is immaterial, at least to me. Again, I like to remind traders out there that US cover-19 situation has not PEAKED.
And if President Trump wants to reopen the economy before that, it is not only irresponsible but could also cause the number of cases to spike up even higher. Is that what he wants ? I doubt it.
The writings are on the wall, really and one need not be a rocket scientist to solve the puzzle. The next 6 months is going to be gloomy for the global economy and US being the leader it always want to be has to set a good example of controlling the covid-19 in a measured and efficient manner and stand ready to help the weaker countries.
Now that China has lifted the lockdown status for Wuhan, where the main cause of Covid-19 is from and sending medical supplies to many countries. This infuriates the politicians in US, nevertheless, accusing them of having an ulterior motive (blah, blah blah). Unless the private firms in US can ramp up the production of medical supplies fast and help its own states, it cannot for the sake of "face-saving" and risk the lives of hundreds and thousands of innocent lives. This will not go down nice in history for President Trump. He knows it and you can hear his current speeches are quite different from the past though he has to send confidence to its people.