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This morning, another 1.4 million Americans filed for unemployment benefits as COVID-19 continues to ravage the country.
Bearish traders are concerned about the growing number of coronavirus cases and the 53 million Americans who have filed for unemployment in the last 18 weeks.
They think the market has gone up too far, too fast, while the economy could easily be forced to shut down again. That would have a negative effect on stocks because many businesses won't even be able to operate in a limited capacity as they are now.
But the bulls think governments around the world will backstop another major drop in stocks like they did back in March. That's where their mantra, "Don't fight the Fed," comes from.
Bullish investors are anticipating trillions of dollars' worth of economic stimulus to be pumped into financial markets that will, in effect, put a floor on stock and bond prices. The bulls also expect governments to keep interest rates low.
Just this week, the European Union adopted another €750 billion ($870 billion) stimulus policy to fight the coronavirus recession.
China increased the amount insurance companies can invest in companies… from 30% to 45%. That's 50% more they can now put into equities markets.
And more support is expected from the U.S. Federal Reserve with additional stimulus checks and an extension of unemployment benefits.
So, where are markets likely headed now?
During his Markets Live stream this week, D.R. revealed one chart that could show exactly which way markets may turn next…
D.R. Barton, Jr., Explains Where the Market Could Head Next
What's Next on Markets Live
Money Morning Quantitative Specialist Chris Johnson is going live again before the market opens tomorrow at 8:45 a.m. ET.
If you're a trader looking for some high probability wins this earnings season, then you won't want to miss his predictions for stocks like Verizon Communications Inc. (NYSE: VZ), Honeywell International Inc. (NYSE: HON), and Schlumberger NV (NYSE: SLB) – all of which report tomorrow.
Then join Shah Gilani live at 11:45 a.m. ET for a look ahead to some of the biggest earnings reports next week.
This was obviously a busy week, with 484 companies releasing their Q2 2020 earnings.
But next week, 987 public companies are scheduled to release their earnings. So, Shah will be preparing investors for some of the biggest and most popular names.
Tune in right here.
If you would like to watch D.R.'s entire stream from yesterday, go here and scroll down to "Recent Livestreams" and catch D.R.'s – and all our recent broadcasts – at your convenience.