This morning’s action has been slower than yesterday, with sentiment still negative. At the halfway point of the trading day, the DJIA DOW (-146), S&P 500 SPX (-5), and NASDAQ (+56) are all slightly in the red. Unfortunately, it looks like the much-anticipated second wave of COVID-19 is well underway.

On the economic news front, the Durable Goods Orders for September have been released to the public. Here’s a quick look at the highlights:

Event                                                                            Actual          Projected        Previous

Durable Goods Orders (Sept.)                                        1.9%              0.5%               0.4%

Durable Goods Orders Except for Defense (Sept.)    3.4%              0.2%               0.9%

This collection of figures is decisively positive. Durable Goods Orders came in well up from August and is a preview of Thursday’s Q3 GDP figures. 

For U.S. stocks, the news has brought sellers to the market as investors manage risk amid the second wave of COVID-19.

COVID-19 Contagion Expands

The past seven days have been historically bad on the COVID-19 front. Global cases have expanded dramatically, with the contagion negatively impacting sentiment.

Overview: From a technical standpoint, the weekly chart above shows the uptrend in December E-mini S&P 500 futures. Even though prices are down this week, they remain very much in bullish territory. The key number in this market is the Weekly SMA at 3349.00; if we see a close above this level, be on the watch for a late-week rally as strong Q3 GDP figures trump COVID-19 headlines.