Tech Talk for Monday March 16th 2020

Mar 16 06:03 2020 Print This Article

 

The Bottom Line

The “Black Swan event” continued last week. Equity markets around the world moved sharply lower. Spread of the coronavirus was a major factor. The VIX Index remained elevated at 58%. Look for more volatility this week. Early signs of a short term bottom appeared in U.S. equity markets on Friday.

Observations

Major U.S. equity indices responded favourably to President Trump’s news conference at 3:15 PM EDT on Friday. Dow Jones Industrial Average, S&P 500 Index and NASDAQ Composite gained 9.3% by the close, their largest one day advance since October 2008. The Dow Jones Industrial Average recorded its highest one day point gain in history.

Medium term technical indicators for U.S. equity markets (e.g. Percent of S&P 500 stocks trading above their 50 day moving average, Bullish Percent Index) moved sharply lower last week and are deeply oversold. Early signs of a bottom appeared on Friday. See end of this report for charts.

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Timing the Market

Tech Talk is a free stock market letter service offering free daily reports on equity markets, sectors, commodities and exchangetraded funds. The Web site has recently received an average of 1.6 million hits per month from 130 countries.

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