Dow Closes Friday Down 915 (Or 4%) As 10-Year Treasury Yield Drop 17 BPS (Fed Announces Reduction In QE)

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.

fedtoinfinity

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.

vixdow

Oddly, the Dow has been fairly predictable .. until The Fed/Congress got involved.

bolldow

According to the Elliott Wave, the Dow has broken from the major wave.

elldow

Equity markets are still hypersensitive to coronavirus news and its impact on the economy.

weifrid

At least Chilean markets are up!

chileup

valp

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