The Dow plunged on Tuesday after health officials warned of the threat of a second wave of infections on a premature reopening of the US economy.
Fed Chairman Powell is scheduled to deliver an economic update today and markets will want to hear of his outlook on the economy and speculation around negative interest rates.
As the US government proposes another round of stimulus package to offset negative impacts of the virus , the US budget deficit surges
Coronavirus updates will continue to act as the key driving force of price action and market sentiment
The Dow closed 457 points lower at 23764 as the bears took control in the second half of Tuesday’s session.
The price would have to show a credible break below the support at 23540 in order to target the support zone at 23300/23250. If this support zone is broken we would register a second lower low since April’s peak and reinforce a bearish view.
Look to the 23760 level to determine direction in today’s session as a sustained move above this level would enable price to reach resistance at 23950 followed by 24090 near the 20-period MA.