There has been optimism about slowing new coronavirus cases, but the pandemic’s threat won’t be in the past until there’s a vaccine or treatment
by Nigam Arora
In short order, greed in the stock market has mostly taken over from fear after reports of slowing new coronavirus cases in New York and Europe.
Is it prudent to chase the rally? The answer is “no,” without knowing where you belong in the protection band. (More on that later.) The best way to analyze the stock market is through multiple time frames. Let’s examine with the help of two charts.
Please click here for an annotated chart of the Dow Jones Industrial Average ETF US:DIA, which tracks the Dow Jones Industrial Average US:DJIA.
Please click here for an annotated chart of S&P 500 ETF US:SPY, which does the same for the S&P 500 Index US:SPX.