SP500 Decision time - Short to the ground below 200dma weekly
S&P500 declined over 7% today exacerbated by OPEC politics and the outbreak of COVID-19. The market isn't being entirely reactionary to the mishandling by current administration, but is also pricing in slow growth in China.
Predict that with no progress, little chance of containment and the end of q1, market will start pricing in slow growth globally (USA, EU, UK, Canada, etc).
The 7% decline today is the 17th largest decline in SP500's recorded history. Aside from 1987's 22% decline, drawdowns in the 7 and 8% range in a single day have only ever occurred during two market cycles, 1930's and 2008.
Play cautiously, zoom that chart out, raise some cash, lock in profits on a dead cat bounce and manage risk... Short it to the ground if 200dma is lost on the weekly time frame
Predict that with no progress, little chance of containment and the end of q1, market will start pricing in slow growth globally (USA, EU, UK, Canada, etc).
The 7% decline today is the 17th largest decline in SP500's recorded history. Aside from 1987's 22% decline, drawdowns in the 7 and 8% range in a single day have only ever occurred during two market cycles, 1930's and 2008.
Play cautiously, zoom that chart out, raise some cash, lock in profits on a dead cat bounce and manage risk... Short it to the ground if 200dma is lost on the weekly time frame