Worries about the second wave of corona virus outbreak weighed heavily on investors' sentiment and pushed the major indices down. The resurgence in positive corona virus cases especially in California and across southern states has put a brake on states' re-opening plan. However, the negative sentiment was partially offset by better than expected manufacturing and service activities, and new home sales in May. For the week, S&P 500 index went down 2.86% to 3009, Dow Jones Industrial Average lost 3.31% , and the technology laden NASDAQ composite index decreased 1.9%.
S&P 500 index gave up most of its gain in the previous week but still closed above its 28 week EMA. 2950-2970 level is an important support level for the next couple of weeks as it is critical for the index to stay above the trend line to keep the up-trend going.
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| Weekly chart of S&P 500 index |
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