Dow Jones Selloff

27 mars 2020

Even with the bounce that Dow Jones is experiencing, the general trend is still bearish and will likely be for a while as long as Covid-19 is around. At the end of trading hours buying spiked, hinting towards a sharp selloff, as has happened the last 4 times it has spiked last minute. On top of this, the 10 day RSI has just reached 70, suggesting it is now in the recovery's overbought territory. Although the stimulus bill is a much bigger deal, the market has not yet compensated for the impact of the record unemployment rate. If it goes up tomorrow, I believe it will be a very risky bet to hold on during the weekend since the 3 largest percentage losses have happened on Mondays.