U.S. Indices Plunge As House Delays Stimulus Vote - Forex News by FX Leaders
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U.S. Indices Plunge As House Delays Stimulus Vote

Posted Friday, March 27, 2020 by
Shain Vernier • 2 min read

Following a strong week of action, the U.S. indices are giving back some of their hard-earned gains. At the halfway point of the Wall Street trading day, the DJIA DOW (-645), S&P 500 SPX (-65), and NASDAQ (-205) are in negative territory. 

The lead story of the session has been another delay in the passage of COVID-19 stimulus. The $2.2 trillion spending package was scheduled to be upvoted verbally this morning at 11:00 AM EST in the House of Representatives. Now, citing duty and procedure, Representative Thomas Massie (Republican, Kentucky) has called for a formal vote. The move will delay the bill’s approval by hours or possibly days.

Passage of the stimulus bill is a foregone conclusion and has already been priced into the markets. However, the new roadblock has struck a nerve in the White House, with Trump lighting up Massie on Twitter:

“Looks like a third rate Grandstander named @RepThomasMassie, a Congressman from, unfortunately, a truly GREAT State, Kentucky, wants to vote against the new Save Our Workers Bill in Congress. He just wants the publicity. He can’t stop it, only delay, which is both dangerous…..”

Ultimately, it’s a bad look for Massie. And, the delay has brought on some late-week skepticism toward the U.S. indices.

U.S. Indices In Limbo Ahead Of Stimulus Bill

Since COVID-19 broke on the scene, Fridays haven’t been kind to the June E-mini S&P 500. Today looks to be another red candle, with investors limiting exposure going into the weekend.

indices
June E-mini S&P 500 Futures (ES), Daily Chart

Here are the key levels to watch for early next week’s trade:

  • Resistance(1): 50% Current Wave, 2652.50
  • Support(1): 38% Current Wave, 2539.50
  • Spike Low, 2174.00

Overview: Technically, the June E-mini S&P 500 remains in a six-week downtrend. However, the daily bearish trend of March is being challenged. Ultimately, the 38% Current Wave retracement (2539.50) and the Psyche Level of 2500.00 are the key support levels to watch. If they give way, a test of the Spike Low may come into play by this time next week.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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