Loading ...Dow for the Week of April 6th, 2020
With its appeal that the coronavirus must be combated under all circumstances, politicians are appealing to people’s primary fears. This is the purest mass manipulation of all time. The consequences of fighting corona are far worse than the virus itself. This is all political. The Democratic governors are all out blaming Trump. New York Governor Andrew Cuomo has been forced to allow to reverse his ban on hydroxychloroquine restrictions for coronavirus. He had deliberately been making it worse in New York for political purposes.
This week remains a target for a turning point, but we may see a high rather than a low and if that happens, then expect a further decline into the end of the month. As long as this market remains below the 24600 area, then the Dow is not in a position to rally on any sustained basis. We still see that the low may form in the mid-17000 level of down as far as the mid-15000 level.
Make no mistake about this, I mentioned at the WEC in October that something “strange” was unfolding the markets and that a high on the ECM (January 18, 2020) warned of a correction of at least 20%. Major panics have often taken the market down 51% which would be the Dow into the mid-15,000 range.
This week watch for Monday 04/06 and Thursday 04/09.
If we exceed 22595.06, then we have a high this week so expect a further decline. A break below 19175 will raise the potential for a new low. A low this week would produce a bounce into the end of the month.
