The Gilmo Report

October 7, 2020

October 7, 2020 6:50 pm ET

Buoyed by the President’s seemingly miraculous recovery from the deadly coronavirus and continued hopes of a stimulus bill deal, the market started the week off in a fit of jubilance. The NASDAQ Composite and S&P 500 Indexes gapped higher on Monday morning to regain their 50-day moving averages, albeit on lighter volume.

Tuesday looked like another strong rally day until the final hour of trading approached and the President tweeted that he was calling off the stimulus bill talks with Democrats. That slammed the market into reverse, resulting in a nasty sell-off that sent the S&P back below its 50-dma while the NASDAQ traded down to its 50-dma, all on higher, above-average volume.

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