$SPY Doom and Gloom Prevails, But Support and Stimulus on Deck

SPY dropped to a major support zone during a week of chaotic pandemic-driven crashing action. Expect a giant cut by the Fed and talk of fiscal stimulus in the EU to start to curb the panic this week.

Fed funds futures are already pricing in a 50 bps cut by Powell and the gang this month and Italy and Germany have already stated they will buck the EU pact to run fiscal stimulus with no argument from Brussels.

With everyone short or hedged, this week could get interesting.