THE CORONA VIRUS IS NO JOKE
I believe it is a mistake to treat this threat as a “temporary setback” or as a buying opportunity as so many commentators suggest, including Larry Kudlow, the president’s personal cheerleader. The charts are not confirming that view, at least not so far. The S&P is now below 3200, a critical support level, and if it closes below that point two days in a row it becomes upward resistance. Next, we will be looking for 3000, an even more important support level, and no guarantees there either. The reason this virus is so important to the stock market is that it can push the economy into recession. We could see an overall decline of 25% or more in the stock market
If we can climb back to close above 3200 by the end of this week, it would be a very positive technical indication. Otherwise…
NOW IS NOT THE TIME FOR COMPLACENCY.
The foregoing is strictly the opinion of the author and is not an offer to buy or sell any securty.
Copyright 2020 by Benjamin Blakeman