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Shopping on Wall Street in a week marked by the collapse of oil

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Wall street It has risen 1% in the last day of a week that has ended in charts for the New York Stock Exchange, after the extraordinary rebound that has starred in US equities since the lows of last March 23. In addition, the tension between China and the US increases after various american states have sued China to pay the losses caused by the Covid-19. Although the week will be remembered by the sinking of West Texas oil, which fell last Monday by 305% to -37 dollars.

Many investors wonder if a new bull market has started as the rise to April highs has exceeded 30%. "That begs the question of why American actions are proving so resilient and if the rally is sustainable, "says Russ Mold, chief investment officer of the specialized firm AJ Bell.

Despite the terrible economic data published in the US and the confinement situation, the S&P 500 it only falls 3% in the last twelve months and the Nasdaq accumulates a 6% rise.

The leadership of the technology sector, the hope of a V-shaped economic recovery and the immense monetary and economic stimuli applied by the Federal Reserve and Congress are the reasons for optimism.

But with the current valuation, the market has discounted a 12% drop in business profits, something that seems very optimistic, since the 2008 crisis caused a 40% crash. Therefore, it is difficult to anticipate that the current rally be sustainableRuss Mold concludes.

THE CORONAVIRUS IN THE USA

In relation to Covid-19, positive cases in the US have risen to 870,000 from 842,000 and the death toll has risen to 50,400 from 46,200, according to data from Johns Hopkings University. For its part, The New York Times publishes that "hidden outbreaks of coronavirus" they spread throughout the main American cities much earlier than initially estimated.

Further, Donald Trump has also returned to be a negative protagonist. The President of the United States has opened the door to extend social distancing measures until the summer. But it has been controversial after suggesting that the cure for the virus may lie in the disinfectant injection and light treatment of the sick.

TECHNICAL ANALYSIS AND OTHER MARKETS

It seems that the S&P 500 "It could take a breather in the form of consolidation before continuing to rally to the resistance of the 3,000 points, prices where the 200 sessions average, a key level ", he affirms Cesar Nuez, analyst at Bolsamanía.

"We will not appreciate a technical complication as long as it remains trading above the 2,637 points, first level of support"adds this expert.

In the raw materials market, crude prices They continue to bounce, albeit with less force, after the collapse earlier in the week. The oil West texas has risen 3% to $ 17.05, while crude oil Brent It has advanced 2.2% to $ 21.82.

In other markets, the euro 0.28% appreciates and changes to $ 1.0806, while the profitability of 10-year American bond falls to 0.59%. And the VIX volatility index it falls 13%, to 36 points, after shooting in the worst moments of March above 85 points.

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