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| DJIA lost by 2.67% (631.56 points) to close at 23018.89. It gap down from its broken rising wedge pattern to and then closer lower than its parallel channel mid-line. |
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| SP500 dropped 3.07% (86.60 points) to close at 2736.57. It has closed lower than its rising wedge bottom and its parallel channel mid-line. |
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| VIX shot up 47.77 but only par gains to close at 45.41 points (gaining 1.58 points, 3.6%). VIX looks like ranging . |
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| Nasdaq lost 3.48% (297.50 points) to close at 8263.23. It has closed below its parallel channel mid-line but a above its 50% Fibonacci retracement level. |
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| Russell 2000 slide 2.33% (28.253) to close at 1185.094. It has the least loss compared t the other 3 |
Stocks - Wall Street Falls, Pressured by Oil Gloom
By Geoffrey Smith
Investing.com -- U.S. stock markets remained sharply lower for a second-straight day on Tuesday as a string of corporate warnings about the impact of the Covid-19 pandemic reinforced a painful hangover from Monday's volatility in oil markets.
By 11:25 AM ET (1525 GMT), the Dow Jones Industrial Average was down 610 points, or 2.8%. The S&P 500 was down 3.1% and the Nasdaq Composite was down 3.8%, the latter in part due to weak data on exports of South Korean semiconductors.
All three indices had fallen heavily at the start of the week as crude oil prices had turned negative due to crushing oversupply in the spot market.
The psychological shock of seeing oil, the world's most important commodity for the last 100 years, trade below zero for the first time on Monday has been profound. Of the majors, only Exxon Mobil (NYSE:XOM) outperformed the broader market, remaining basically flat. while Chevron (NYSE:CVX) stock was down 1.7%, and ConocoPhillips (NYSE:COP) was down 2.75%. Smaller upstream companies were outperforming slightly after heavy falls in the previous session.
Analysts at Goldman Sachs (NYSE:GS) argued in a note to clients on Tuesday that while the coordinated cut by OPEC and its allies had been "too little, too late" to save prices in the current quarter, but created the basis for a solid rebound in the second half.
President Donald Trump, meanwhile, raised expectations of a possible bailout for the sector on Tuesday, tweeting that: "We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!"
Congressional Democrats had previously blocked the appropriation of some $3 billion for purchases to fill the Strategic Petroleum Reserve, and do not appear to have changed their position since. Trump mentioned on Monday that an import ban on Saudi oil could be considered.
Away from the oil patch, a number of heavyweight stocks underperformed after the Covid-19 pandemic hit their reports for the first three months of this year; Coca-Cola (NYSE:KO) warned that the closure of social venues would hit it particularly badly in the current quarter, while IBM (NYSE:IBM) stock fell 5.9% after it warned of a sharp drop in business investment after the bell on Monday. Big Blue returned to its trend of falling revenue as clients deferred major upgrades to their IT. German rival SAP's ADRs (NYSE:SAP) fell 5.8% after the departure of co-CEO Jennifer Morgan less than six months after she was promoted to the job.
Lululemon Athletica (NASDAQ:LULU) stock had a different sort of Covid-19 problem after a rogue art director promoted a T-shirt with the motif "bat fried rice", triggering outrage in China, where it was perceived as a reference to the livestock market in Wuhan where the virus is believed to have jumped species. Lululemon stock was down 4.1%.
By contrast, the day's biggest gainer was Beyond Meat (NASDAQ:BYND) stock, which rose more than 5% after announcing a distribution deal with Starbucks (NASDAQ:SBUX) in China. Demand for plant-based alternatives to meat is seen by both companies as being structurally supported by the negative publicity around China's policing of its food chain.
https://www.investing.com/news/stock-market-news/wall-street-opens-lower-as-earnings-add-to-oil-gloom-dow-down-500-2146357
Source
https://www.investing.com/markets/united-states
https://www.investing.com/indices
https://www.finviz.com
https://money.cnn.com/investing/about-fear-greed-tool/index.html
https://money.cnn.com/data/fear-and-greed
Fear and Greed Index
On this page, you will find our latest updates on the CNN Fear and Greed Index.
The CNN Fear and Greed Index in its purest form answers the question, “What is the predominant emotion of the stock market right now?”
It’s a sentiment indicator that tells if equities are undervalued or overvalued. The logic behind it is that too much greed can push stock prices beyond their fair price, while too much fear can cause stocks to slip well below their intrinsic price, as traders don’t act rationally in the short-term.
The Fear and Greed index uses seven indicators to conclude the extent of the market’s fear and greed and measures the market’s sentiment based on these two emotions on a daily, weekly, monthly, and annual basis. The following metrics compose the index and aim to provide a holistic view of the market’s emotions:
Put and Call Options: How much have put options lagged behind call options?
Market Momentum: Where is the S&P 500 relative to its 125-day average?
Stock Price Strength: It counts the number of stocks that have touched 52-week highs vs. 52-week lows on the New York Stock Exchange (NYSE).
Stock Price Breadth: The McClellan Volume Summation Index compares the volumes on rising stocks versus declining ones.
Safe Haven Demand: How well are stocks performing compared to safe-haven assets like US Treasury bonds?
Market Volatility: It uses the Chicago Board Options Exchange Volatility Index (VIX) relative to its 50-moving average.
Junk Bond Demand: What is the spread between junk bonds and safer, investment-grade corporate bonds?
How to use the Fear and Greed Index?
The seven metrics are individually-measured on a scale of 0-100 with lower numbers indicating fear while higher figures pointing to greed. They are then weighted equally to calculate the Fear and Greed Index.
The index is a great tool to help investors and traders get an idea of when it is time to enter the markets. When the Fear and Greed index is trading near its recent extreme lows it hints that a significant bottom in the market is pending. The index should be interpreted with the help of technical analysis to improve entry signals. It is also possible to use the index to figure out when the market is overbought, but at least historically, the indicator is less useful to predict significant highs.
DISCLAIMER:
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All information updates, tables and charts are for informational purposes only; they are not intended for trading purposes or advice.
We do not and cannot guarantee the accuracy of the information.
Please consult your broker or financial representative to verify pricing before executing any trade.
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