Testing Trendlines Wed, Feb 26, 2020 US stocks have struggled to hold on to positive levels today as the S&P 500 has given up an intraday gain of more than 1.5%. Looking at a longer-term chart of the S&P 500, we're currently testing the uptrend that has been in place since the lows in December 2018. If that trendline fails to hold (~3,100), technicals would suggest that another round of selling is in store. Outside of the US, Brazil announced its first case of the coronavirus today, and the country's benchmark Ibovespa index is down over 5%. Like the S&P 500 in the US, today's decline in Brazil is also resulting in a test of a trendline that has been in place since the summer of 2018. Unless the news flow on the coronavirus starts to improve, these trendlines will increasingly come under pressure. Join Bespoke Premium to access Bespoke's most actionable stock market research and analysis.
Coronavirus Pullback Continues The global equity weakness continued yesterday, with consecutive 3% drops for the S&P 500 Index for the first time since August 2015. It might be hard to believe, but exactly one week ago today the S&P 500 was making a new all-time high. What a difference seven days makes! Yes, the uncertainty that that coronavirus outbreak has caused has sparked the weakness we’ve seen over the past week, but at times like these, it is important to remember that markets go both up and down. “The S&P 500 has pulled back more than 5% from the recent peak, which has many investors on edge,” said LPL Financial Senior Market Strategist Ryan Detrick. “Importantly, most years see stocks pull back at least 5% multiple times. Even as good as last year was, stocks still pulled back 5% twice.” As shown in the LPL Chart of the Day, since 1950, the S&P 500 has seen an average of nearly three separate 5% pullbacks per year. Although a 1995 or 2017 can happen (years which don’t see any 5% pullbacks), it is much more common for there to be multiple 5% pullbacks in any given year. The recent bout of volatility has sent many investors on edge, but we continue to expect a return to pre-outbreak levels of global economic growth and corporate profits within the next several months, which should help continue to power this record-long bull market and economic expansion through 2020.
futures under pressure, i really hope this negative momentum continues into the open, we need an opening flush
CDC confirms first possible ‘community spread’ coronavirus case in US https://www.cnbc.com/2020/02/26/cdc...-community-spread-coronavirus-case-in-us.html There could be some panic selling tomorrow
Let’s hope it doesn’t spread like it is in Korea or Italy, if it happens then we would have to worry about the virus much more than the stock markets unfortunately
No big deal..."fake news media" just trying to scare everyone again: Breakthrough: Chloroquine phosphate has shown apparent efficacy in treatment of COVID-19 associated pneumonia in clinical studies. https://www.ncbi.nlm.nih.gov/pubmed/32074550
Hot damn guys, what a week. Anyone trying to catch a falling samurai sword is signing up for "whatever." Ten days ago I ordered some N95 masks on Amazon, did it IMMEDIATELY when I read Tyler at ZH saying they were already impossible to find (was that a helpful hint?) and now they are very hard to find, and prices have been jacked up 50-100% or more. This exogenous shock is something that I suspect a majority of today's traders have never seen. 2011, 2008-9, 1999-2000, I don't know, this is so outside of a direct stock market event - not debt-driven, not technical, it's entirely due to the health of the human race and the perceived threat to it. None of the magic formulas you've found success with are going to do much good until VIX stops twisting in the breeze. Good luck, stay safe guys. I'm running a hotel renovation project right now, and I can't fathom how the job might be changing when the field work starts in December. The world could behave very differently by then, or we could be back to normal. Of course the third story, the truth, is probably somewhere between.
MMM up Maybe they are becoming somewhat a coronavirus play now since the demand of masks is high now around the world
oh man! you know when things are starting to get real when @stock1234 is already up and posting on the forums and it's still AM on the east!
Haha yeah usually I don’t get up this early, but can’t resist to look at the market when it is moving like this Probably need a quick nap after lunch
I don’t think the bottom is in until we gap down and make a intraday reversal Unfortunately if there is an outbreak in the US (I certainly hope it won’t be the case) then who knows how low we could go, we probably would reach the bear market territory rather quickly if there is an outbreak here
