US stocks closed higher overnight on optimism that coronavirus lockdown is going to end soon, partially at least. DOW rose 1.51%, S&P 500 gained 1.47% while NASDAQ added 1.11%. WSJ reported that General Motors, Ford and Fiat Chrysler are targeting to resume some productions on May 18. The decision came after the executives’ meeting with United Auto Workers and Michigan Governor Gretchen Whitmer’s office last week.
None of the companies, nor Whitemer, confirmed the news. It’s should be just a matter of a week or two later when some sort of reopening should happen in less risky areas. Meanwhile, the severely impacted New York state is planning some reopening on May 15 too.
DOW is back pressing 55 day EMA after the rally overnight. For now, we’re still seeing the rebound from 18213.65 as a corrective move. Hence, even in case of another rise, upside should be limited by 61.8% retracement of 29568.57 to 18213.65 at 25230.99. Meanwhile, break of 22941.88 support should now be an indication of completion of the rebound, and turn near term outlook bearish again.
