Your Thursday Blip 6/18/20

Your Thursday Blip 6/18/20

Despite a weak jobless claims number the Dow erased a 270 point opening drop and traded positive before closing the day with a 39 point loss at 26,080. Trading volume for the day was lower. The Dow continues to hold above its 50 day moving average and is finding support at the 25,200 level and resistance at the 27,500 level. IBD continues to list markets in rally mode and market leadership rests clearly in the technology space.
The latest weekly unemployment claims came in at 1.5 million which was worse than the 1.3 million figure the gurus had expected. David Lebovitz, global strategist over at JP Morgan figures that markets will be range bound until either a significant announcement on the medical front in the form of a vaccine or the economic front with a new stimulus bill to move above the current range. Until then dividends are nice to have.
In global news, tensions are on the rise between North and South Korea after some North Korean defectors now living in South Korean sent balloons over the border carrying leaflets and hard drives with information critical of North Korea’s gubment. Central banks in Europe are affirming they will keep interest rates at zero or negative for at least a year or two and France and the US broke off talks regarding the digital tax that France was going to levy against big US tech firms. India might start shopping for military supplies as it faces off with China. There is some speculation that India needs to upgrade its air force which currently has mostly old Soviet jets. Boeing, Lockheed and Raytheon might be beneficiaries in this situation as could Airbus.

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