Fed buys investment-grade bonds from 794 companies
On Sunday, the Fed identified 794 companies whose investment-grade bonds it will buy directly, as one of the measures to support the economy amid the COVID-19 pandemic. The companies range across 12 different sectors.
The companies include Apple, Verizon, AT&T, 3M, Adobe, and the U.S. units of Toyota Motor , Volkswagen , and Daimler.
This month, the Fed started purchasing individual corporate bonds, (in addition to just ETFs that it started buying earlier). The latest disclosures included the actual bonds it started buying this month.
The Fed plans to purchase up to $250 billion of debt in the secondary market. Later it plans to purchase up to $500 billion in newly issued bonds (i.e. in the primary market).
Tickeron's AI-powered scorecard rates SPDR® S&P 500 ETF Trust as SELL.
SPY enters a Downtrend because Momentum Indicator dropped below the 0 level on June 26, 2020
This indicator signals that SPY's price has further to drop, since it moved below its price 14 days ago. Traders may consider selling the ticker, shorting the ticker, or exploring put options. In 44 of 73 cases where SPY's Momentum Indicator fell below the 0 level, its price fell further within the subsequent month. The odds of a continued Downtrend are 60%.
Current price $303.43 crossed the resistance line at $310.92 and is trading between $310.92 resistance and $294.33 support lines. Throughout the month of 05/27/20 - 06/26/20, the price experienced a -0.71% Downtrend. During the week of 06/19/20 - 06/26/20, the ETF fell -3%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator appears to be shifting from an Uptrend to a Downtrend. In 24 of 57 cases where SPY's RSI indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 42%.
The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 23 of 46 cases where SPY's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 50%.
The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 18 of 39 cases where SPY's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 46%.
Bullish Trend Analysis
The Stochastic Indicator suggests the ticker price trend may be in a reversal from a Downtrend to an Uptrend. 31 of 43 cases where SPY's Stochastic Indicator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued Uptrend are 72%.
The Aroon Indicator entered an Uptrend today. In 256 of 431 similar cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 59%.
