Wednesday's Market Minute: "Don't Tell Me To Calm Down!"

Futures are pointing toward a higher open, as markets seem to have been bolstered by the Fed's surprise rate cut yesterday as well as favorable Super Tuesday results for Joe Biden. But yesterday's 0.5% reduction didn't feel like it completely soothed jittery investors worried about coronavirus and its sweeping global economic impact. Rather, it felt more like the reaction when you try telling someone who's upset to calm down – it just makes them even more upset. The rate cut itself was not exactly shocking, as markets were already pricing in the event as a near-certainty. But the unexpected timing seemed to suggest to many traders that the situation is indeed serious. From a technical perspective, S&P futures are bouncing around the 200-SMA, currently near 3050, while the RSI is holding above oversold. This 3050 level will be critical to watch as markets struggle to find some footing amid the recent surge of volatility. The 200-SMA has been important for many products recently. Check out Friday's price action in Nasdaq futures, as the contract surged after briefly crossing below its 200-SMA. On the other hand, Emerging Markets Futures saw a sharp rejection yesterday at resistance near this same technical indicator. Be on the lookout for major breakouts near this important indicator as signs of a change in trend.

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