The US market is down more than 8% in the last 3 days, finally fully grasping the impact of the Coronavirus has on the global economy.
The slow down in global activity, specifically from China, will definitely impact the bottom line of global companies and should be reflected in their Q2/20 results. Since the market is forward-looking, that realization took hold with investors and sent the market to a tailspin. Technical analysis is based on rational, trend developing markets and not on emotional, violent, nose dives as we have seen in the last 3 days.
So we can’t really make much of TA these days, for what its worth, the SP500 is at the 50% retracement Fibonacci level, but again, we would put too much weight on it now.