(DAILY NOTION): Futures for NAS100, SPX500, US30 Recorded Gains, Next Mover: U.S. GDP, Progress Of Biden Stimulus Package

NASDAQ 100 (as of Feb 22, 2021 at 12.30 p.m.)

Source: Yahoo Finance

SPX 500 (as of Feb 22, 2021 at 12.30 p.m.)

Source: Yahoo Finance

US30 (as of Feb 22, 2021 at 12.30 p.m.)

Source: Yahoo Finance 

As the week starts, both the SPX500 and NAS100 futures was up by 0.2% while the US30 futures increased 20 points. At the close of last week, the US30 closed below its 50-day Simple Moving Average (SMA), which is denoted by the purple line in the charts above and a bearish trend was spotted on the Moving Average Convergence Divergence (MACD). A similar trend was also spotted with the SPX500 and NAS100.

How would this week fare for Wall Street? The head of international fixed income at National Alliance Securities believes that the rising U.S. Treasury yields are not good news for the equity market. The 10-year U.S. Treasury yields moved above 1.3% last week, which is the first time it has done so since Feb 2020.

In the meantime, the release of the U.S. gross domestic product (GDP) this week could be an important factor impacting the risk sentiment, as a positive result would increase hope for economic recovery.

Similarly, another key event to watch is the discussion between Jerome Powell, the chairman of the U.S. Federal Reserve (Fed) and the U.S. House and Senate committee. Will a hawkish or dovish sentiment be picked up from Powell during these discussions?

With regards to the Biden Stimulus Package, it is expected that the Democrats will be passing the stimulus bill by end of this week. The $1.9 trillion stimulus package has been the subject of much debate, as the Republicans are not in favour of the massive size of the stimulus.

However, in a recent blog spot, the chief economist of the International Monetary Fund (IMF), Gita Gopinath, has dismissed the notion that the Biden Stimulus Package would cause inflation to spin out of control.

As February ends, let’s take a look at how the month has been for the three major indices. The Consumer News and Business Channel (CNBC) reported that the NAS100 has risen 6.2% while both the SPX500 and US30 has recorded more than 5% gains. Would the bulls be able to maintain their momentum this week? Let’s keep an eye on this space.

FOLLOWME User Sentiment (as of Feb 22, 2021 at 12.40 p.m.)

SPX500

Short – 82.43%

Long – 17.57%

NAS100

Short – 64.60%                

Long – 35.40%

US30

Short – 75.74%

Long – 25.26%