Despite titanic intervention by The Federal Reserve and $2 trillion Congressional spending bill (packed with pork-barrel spending unrelated to the coronavirus), the Dow continued to nosedive.
Or as Buzz Lightyear once said “To infinity … and beyond!” He was referring to government spending and The Fed’s balance sheet.
The Dow has whipsawed over the week, but particularly Friday. When The Fed announced it will reduce Treasury QE from $75BN to $60BN per day, the Dow dropped.
Oddly, the Dow has been fairly predictable .. until The Fed/Congress got involved.
According to the Elliott Wave, the Dow has broken from the major wave.
Equity markets are still hypersensitive to coronavirus news and its impact on the economy.
At least Chilean markets are up!