Stocks went up early in the week with optimism about the treatment and vaccine for the Covid-19, however, investors sentiment went sour Thursday as data showed 3.8 million American filed for unemployment benefit, and March personal income and spending have fallen more than expected. For the week, S&P 500 index went down 0.2% to 2830, Dow Jones Industrial Average lost 0.2% , and the technology laden NASDAQ composite index decreased 0.3%.
S&P 500 index reached 28 week exponential moving average on Wednesday and retreated Thursday and Friday. We have discussed about the strong resistance at 2935 level as it is where the 28 week EMA and the key 61.8% Fibonacci retracement came together. While S&P 500 index posted its best monthly performance in April (up 12.9%) since 1987, May is a seasonally weaker month with the adage, "Sell in May and Go Away." The index has bounced back 26.6% from its March 23 low and I think it is due for a break to digest its lofty gain.
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| Weekly chart of S&P 500 index |
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