US stocks rebounded notably overnight but DOW’s 1167pts rise was way short of Monday’s -2000 pts loss. President Donald Trump disappointed the markets as he failed to deliver the coronavirus response measures he mentioned on Monday. There was no resolution at his meeting with Republicans. Trump just said after the meeting, “Be calm. It’s really working out. A lot of good things are going to happen.” It’s reported that Republicans are skeptical on the payroll tax cut pushed by economic adviser Peter Navarro.
Also, after the meeting, Trump sent Treasury Secretary Steven Mnuchin to meet House Speaker Nancy Pelosi to kick start a congressional response. After meeting with Pelosi, Mnuchin just said it’s too early to call the talks “negotiations”. Arguably, the US is still some way from concluding a certain relief package.
High volatility will very likely continue in the financial markets ahead. DOW might be able to close Monday’s gap should there be any positive news out of the White House in the coming days. But there is no sign of a major bottoming yet. Corrective from 29568.57 is expected to extend to 100% projection at 22214.78 ahead, sooner or later.
