The week 18.05-22.05.2020

Hopes of a breakthrough regarding the development of a vaccine against Covid19 on the one hand and the poor unemployment figures and the further deterioration in economic data on the other hand. The S & P500 closed the week with a gain of 1.43%. ONE SIGNAL also closed the week with a plus of 0.62%. The recession that was just around the corner could hit us much harder than expected. The reason for this is the de facto sudden freeze in the global economy. Meanwhile, central banks and governments are frantically trying to mitigate the crashes with more announcements and even more money. The S & P500 has only moved sideways since the end of April and this reflects the indecisiveness of investors who are on the sidelines and watching further developments. For that reason, the index appears to be caught between the 50 and 200 daily averages. It strongly seems that active investors appear to be rethinking their positions and restructuring portfolios. The oil price was the loser of the week (-8.30%). Some speculators may have reduced their positions and locked their profits.