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Should We Buy Today's Market Break?

Daniel Laboe

All major indexes dipped over 2% today as fears of another pandemic wave rise. The number of new daily cases surged past 36,000 yesterday, the highest level in 2 months.

Despite the spike in cases, the death rate remains low (this may change with time if these cases turn serious). Some are speculating that as this virus mutates, it is becoming progressively less deadly. The uptick in cases may be due to the lack of initial outbreaks in the hot regions right now.

This rise in new COVID cases (especially in rural Trump-supporting areas) could expedite another fiscal stimulus bill.

S&P 500 support levels to watch out are the 200-day moving average at 3,020 and a Fibonacci level at 2,935. Upside target for the S&P 500 is currently sitting at 3,400 (February highs) which we could hit if everything goes right. These levels are indicated in my TradingView chart below.

SPY QQQ 

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