Today the S&P 500 opened at $3,062 and closed at $2,978 for a -4.4% loss in one trading session and its largest one-day decline in the current pullback from all-time highs last week. Other indices, such as the DOW Jones, saw its largest 1-day decline in history, it's fastest 10% drop in history this week, as well as its worst 6-day performance since 1928, just before the Great Depression.
I prefer charting the S&P 500 due to it being a gauge of US economic health as well as it being a more reliable indication of how the overall stock market is performing since it tracks more stocks than the DOW, which is comprised of only the top 30 stocks trading on the market while S&P 500 tracks the top 500.
As for the S&P 500 price move today: after holding at the orange uptrend support line on Tuesday and Wednesday price fell below it today and reached the red horizontal support line that I've pointed out as a likely target in previous SPX charts this week. Not only did price reach the red line, but price closed below it which shows the level of bearishness from traders over Covid19 fears; what should have been a level where dip-buyers stepped up to bargain-hunt simply did not manifest. Price pushed lower into the close after briefly attempting to rise mid-day and ended up closing at the low of the day which is bearish and usually an indication of further losses to come on the next trading session(tomorrow).
Price has now failed to hold above two key support levels which is further indication of just how bearish traders are right now. Normally you would see some kind of bounce, or relief rally, but all attempts to buy this market are swiftly being wiped out by fearful sellers and rightfully so.
I'm waiting for the weekly close tomorrow before writing up a more detailed analysis of the market, but considering the moves in prices this week and the deteriorating Covid19 outlook, it's safe to assume that barring some surprise interest rate cut from the Federal Reserve markets will likely be taking another dip.
If all hope of a market rebound is resting on Covid19 conditions improving, here are some recent items of news showing that the situation is getting worse, not better:
8,400 people in California are being monitored after commercial flights:
marketwatch.com/story/california-governor-8400-people-from-commercial-flights-being-monitored-for-covid-19-2020-02-27
Northern California reports first case of Covid19 not tied to travel:
livescience.com/northern-california-coronavirus-case-community-spread.html
700 people in New York being monitored for possible Covid19:
msn.com/en-us/news/us/700-people-in-ny-being-monitored-for-possible-coronavirus/ar-BB10tg2r
California's UC Davis sends exposed workers home:
modbee.com/news/california/article240694286.html?__twitter_impression=true
Trump administration considers using Defense Production Act to expand manufacturing of protective masks:
reuters.com/article/us-china-health-usa-production-exclusive/exclusive-u-s-mulls-using-sweeping-powers-to-ramp-up-production-of-coronavirus-protective-gear-idUSKCN20L2S0
Netherlands confirms first Covid19 case:
thehill.com/policy/healthcare/485034-netherlands-confirms-first-coronavirus-case
Iran's vice president has contracted Covid19:
thehill.com/policy/healthcare/484943-irans-vice-president-has-contracted-coronavirus-state-media-says
Saudi Arabia halts travel to Mecca:
aljazeera.com/news/2020/02/saudi-arabia-halts-travel-mecca-medina-coronavirus-200227054424029.html
Pope Francis sick a day after supporting Covid19 sufferers:
nypost.com/2020/02/27/pope-francis-sick-a-day-after-supporting-coronavirus-sufferers/
CDC waited days to test California's latest 'Mystery' patient for Covid19:
nytimes.com/2020/02/27/health/coronavirus-testing-california.html?referringSource=articleShare
I don't foresee many traders wanting to buy tomorrow and hold over the weekend given the news cycle this week and the obviously deteriorating Covid19 situation.
I prefer charting the S&P 500 due to it being a gauge of US economic health as well as it being a more reliable indication of how the overall stock market is performing since it tracks more stocks than the DOW, which is comprised of only the top 30 stocks trading on the market while S&P 500 tracks the top 500.
As for the S&P 500 price move today: after holding at the orange uptrend support line on Tuesday and Wednesday price fell below it today and reached the red horizontal support line that I've pointed out as a likely target in previous SPX charts this week. Not only did price reach the red line, but price closed below it which shows the level of bearishness from traders over Covid19 fears; what should have been a level where dip-buyers stepped up to bargain-hunt simply did not manifest. Price pushed lower into the close after briefly attempting to rise mid-day and ended up closing at the low of the day which is bearish and usually an indication of further losses to come on the next trading session(tomorrow).
Price has now failed to hold above two key support levels which is further indication of just how bearish traders are right now. Normally you would see some kind of bounce, or relief rally, but all attempts to buy this market are swiftly being wiped out by fearful sellers and rightfully so.
I'm waiting for the weekly close tomorrow before writing up a more detailed analysis of the market, but considering the moves in prices this week and the deteriorating Covid19 outlook, it's safe to assume that barring some surprise interest rate cut from the Federal Reserve markets will likely be taking another dip.
If all hope of a market rebound is resting on Covid19 conditions improving, here are some recent items of news showing that the situation is getting worse, not better:
8,400 people in California are being monitored after commercial flights:
marketwatch.com/story/california-governor-8400-people-from-commercial-flights-being-monitored-for-covid-19-2020-02-27
Northern California reports first case of Covid19 not tied to travel:
livescience.com/northern-california-coronavirus-case-community-spread.html
700 people in New York being monitored for possible Covid19:
msn.com/en-us/news/us/700-people-in-ny-being-monitored-for-possible-coronavirus/ar-BB10tg2r
California's UC Davis sends exposed workers home:
modbee.com/news/california/article240694286.html?__twitter_impression=true
Trump administration considers using Defense Production Act to expand manufacturing of protective masks:
reuters.com/article/us-china-health-usa-production-exclusive/exclusive-u-s-mulls-using-sweeping-powers-to-ramp-up-production-of-coronavirus-protective-gear-idUSKCN20L2S0
Netherlands confirms first Covid19 case:
thehill.com/policy/healthcare/485034-netherlands-confirms-first-coronavirus-case
Iran's vice president has contracted Covid19:
thehill.com/policy/healthcare/484943-irans-vice-president-has-contracted-coronavirus-state-media-says
Saudi Arabia halts travel to Mecca:
aljazeera.com/news/2020/02/saudi-arabia-halts-travel-mecca-medina-coronavirus-200227054424029.html
Pope Francis sick a day after supporting Covid19 sufferers:
nypost.com/2020/02/27/pope-francis-sick-a-day-after-supporting-coronavirus-sufferers/
CDC waited days to test California's latest 'Mystery' patient for Covid19:
nytimes.com/2020/02/27/health/coronavirus-testing-california.html?referringSource=articleShare
I don't foresee many traders wanting to buy tomorrow and hold over the weekend given the news cycle this week and the obviously deteriorating Covid19 situation.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.