Signal Update: The Corona Virus Takes Its Toll On The US Stock Market: S&P 500 Getting Closer To Our 50% Fibonacci Price at 2,000
The US S&P 500 continue its bearish trend (trading at 2,174 at today lows) as the Corona Virus hit the US hard at its center city, New York. Looking at the chart below it seems there is nothing to stop the S&P 500 from moving fast to our 50% Fibonacci Price target at 2,000.
March 17 update: The selling pressure in the S&P 500 continues has the Corona virus continue to spread and countries taking strong measures to fight it. As a result the market is still under pressure and there is no clarity on the situation in the near future. Accordingly, the S&P 500 declined from our prior signal at 2,600 to our 2,500 target and price has been trading around that level for few days as some buyers bought at that level to make quick 100 points bounce. However, the selling pressure continues and looking at the chart below, we can see that the next price support level is at the 2,000 level which is also the 50% Fibonacci retracement level. If we don’t get a very strong and surprising price bounce higher from current level, we will probably move to 2,000 even by this weekend.
March 12 signal: The U.S. Stock Market continues breaking down fast as the Corona Virus spread rapidly around the world. World economies are under “lock-down” as countries shutting down important business and government operations, such as the increasing travel ban around the world. The long term monthly chart for the S&P 500 Futures shows possible support level at $2,500 level in which traders can use as a potential level for a bounce higher. Check our chart below and see our analysis.