It’s reported that Senate Democrats and Republicans have finally reached an agreement of the USD 2T economic response package for coronavirus pandemic, after some unexpected jitters. No details were released yet but the package should include assistance to companies, cities and states. There will be checks to most Americans, with loans and aid for small business, unemployment insurance, tax deferrals etc. Senate vote could be held as soon as Wednesday, then followed by House vote.
DOW surged 2112.98 pts, or 11.37% overnight on optimism over the stimulus. After the biggest rise since 1933, DOW is back above 20000 handle at 20704.91. A short term bottom should be in place at 18213.65, on bullish convergence condition in hourly MACD. Stronger recovery could be seen to 38.2% retracement of 29568.57 to 18213.65 at 22551.22. Reactions from there would reveal some hints on the eventual depth of the fall from 29568.57.