Chart of the day: No support from here as the US500 freefalls
Global stocks were in free fall this morning as coronavirus fears deepen in the United States on news that California state was monitoring more than 8,000 citizens who had travelled to Asia for signs of the virus. The S&P 500 (US500) dropped more than 150 points on the day and erased its gains since 11 October.
The benchmark index has fallen beyond any clear support and is trading below the 200 day EMA. Volatility has spiked amid the sell-off, with the VIX jumping to 39.16 as virus fears sweep the globe.
Developments over the weekend will guide next week’s move, whether a rebound or continued sell-off. Whichever the case, a significant development in the newsflow will present gapping risk on the Monday open.
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