S&P took quite a hit today

[jackg]

I'm looking at reports and a lot of them are saying it's due to the coronovirus, I don't know how much of an impact that would have on the American markets but it looks to be quite a big one, my small position lost $100 in profit since Friday. The rest of the international markets I.e the vuk and ftse 100uk also look to have responded but they seem to be a delayed response (unless anythings got worse that I haven't noticed from ignoring mainstream media and its general fear mongering).

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[TheAndy500]

Coronavirus, or rather the fact that the industry in China has been very much limited, will certainly have an impact on the economy around the world. I am not sure how this could affect FIAT money rates. However, if stock prices fall on classic exchanges, then some capital should move to the cryptocurrency market. I think that if the situation in China does not improve, in the long run, it may affect the increase in cryptocurrency prices.

[jackg]

I think that if the situation in China does not improve, in the long run, it may affect the increase in cryptocurrency prices.

Well if some stocks fall because of it then I can see bitcoin and ethereum taking a bit of an advantage over this since they've proved to be 'fairly' stable so far while the other markets haven't been and even quite a bit more prosporous...

It does look a lot like a retracement in the stock market though, as if it isn't irrecoverable and it may be nearing the bottom of its immediate correction. It did look to be stabalising and moving slightly upwards just before I wrote this, but not as much as it could so it'll likely either keep moving sideways or go up in the immediate term.

[The Sceptical Chymist]

I have a feeling that drop wasn't due to any virus.  The stock market has been on a tear for years now and I'm surprised we haven't seen more of these 3-4% corrections--and hell, I remember when the S&P 500 was stuck below 1000 for the longest time.  I'm sure a big event like a viral contagion can affect things, but I just don't think it's that in this case.  Could be wrong, of course.

There was a website that showed the death toll from corona virus, but I forgot what it is.  Is the number getting much bigger or what?  In any event, I don't think it's anywhere near the death toll from 9/11, and that's a big event that actually did affect the stock market for quite a while.

[YuginKadoya]

I also think that it is not from the virus as well but the lingering fear from the people because of the virus is surely in it, but I really think that there is no effect on the market of crypto but with just the people itself,

But we can not set aside the problem on the coronavirus issue as a small kind of problem, There are many affected and not only China is involved here but the whole world itself it becomes a global threat in my opinion and as we speak it will just keep it worst day by day.

[exstasie]

I'm looking at reports and a lot of them are saying it's due to the coronovirus, I don't know how much of an impact that would have on the American markets but it looks to be quite a big one, my small position lost $100 in profit since Friday. The rest of the international markets I.e the vuk and ftse 100uk also look to have responded but they seem to be a delayed response (unless anythings got worse that I haven't noticed from ignoring mainstream media and its general fear mongering).

You weren't kidding. That's one heck of a gap down on the daily chart! Haven't see one this big in years.



It also looks like an exhaustion gap, which could usher in a larger bearish correction. https://www.investopedia.com/terms/e/exhaustiongap.asp



Keep in mind, the S&P 500 is only down 5% from its ATH, reached last week. We were at this price 3 weeks ago. This is nowhere near a "crash" yet.

Something to consider though: if the coronavirus does end up developing into a major pandemic, it could usher in a recession quicker than I've been anticipating.

[adaseb]

I think what is going on is that the media is scaring many retail stock traders out of their positions in fear of some global epidemic which might cause a recession. I think many retail traders are up a large %'s in the last few years and they want to preserve profits. So they see headlines like coronavirus and assume some outbreak on the entire planet will happen and it will cause a recession.

So they just sell their positions at a profit and get out of the market. The markets correct a little and in a few weeks resume their upcourse. I can be wrong but its still very close to its ATH and this is a very healthy pullback. Most likely this is purely driven by fear.

[pooya87]

i have a feeling that a mass panic is building up in all the different markets around the world for no reason except the excuse called Corona-virus. if you paid attention, they started spreading FUD and tried causing panic in bitcoin market a while back but interestingly enough they failed as bitcoin went up in price instead of going down and reached $10k.
we have seen stock market plunges in many cases due to this but nothing major has happened like a big crash but i think it is still a possibility if the panic grows more among investors. would be interesting to see how bitcoin reacts though, will it rise like last time?

[exstasie]

I think what is going on is that the media is scaring many retail stock traders out of their positions in fear of some global epidemic which might cause a recession. I think many retail traders are up a large %'s in the last few years and they want to preserve profits. So they see headlines like coronavirus and assume some outbreak on the entire planet will happen and it will cause a recession.

So they just sell their positions at a profit and get out of the market. The markets correct a little and in a few weeks resume their upcourse. I can be wrong but its still very close to its ATH and this is a very healthy pullback. Most likely this is purely driven by fear.

On the weekly chart, the drop is hardly even visible. Still above the 20-week MA, still within 5% of the ATH. Not too worried about it either.

I do hope the coronavirus stuff simmers down soon. On its own, a pandemic might not be enough to cause a recession, but it could help catalyze one that was already on the way:

Tom McClellan, a prominent technical analyst, said the yield curve inversion that occurred in the summer of last year is still in force and that market participants have been too dismissive of that recession signal (see attached chart): “Generally speaking, it takes about 15 months for those effects to show up in overall economic data,” he wrote in a Thursday research note.

“Last year’s yield curve inversion is still yet to be felt, and that is not even factoring the additional economic slowdown effect from the coronavirus,” McClellan wrote.

https://www.marketwatch.com/story/why-the-coronavirus-outbreak-is-delivering-a-fresh-dose-of-recession-fear-to-the-stock-market-2020-02-22

[mk4]

As far as I know(my guess, because as we all know, there's really no way to know for sure), it's not due to the corona virus itself, but specifically, the fear of the corona virus. I guess a good number of investors are expecting the virus to spread to the west and stuff to go worse from here in general.

Or yea, of course also one possibility is that we've been in a bull market for freakin who knows how long already. I'm actually liking seeing a bit of red for a change.

[wheelz1200]

I'm looking at reports and a lot of them are saying it's due to the coronovirus, I don't know how much of an impact that would have on the American markets but it looks to be quite a big one, my small position lost $100 in profit since Friday. The rest of the international markets I.e the vuk and ftse 100uk also look to have responded but they seem to be a delayed response (unless anythings got worse that I haven't noticed from ignoring mainstream media and its general fear mongering).

American companies on the Dow jones and Nasdaq markets rely on manufacturing in china to keep their inventory levels high enough to sustain their business.  As this pandemic spreads and factories in china keep closing that will directly weight heavy on business.  But to be honest, most of it is out of the fear of uncertainty.

[el kaka22]

I am not shocked, there is less and less money in the world and there are more and more money in the whales. People assume companies like amazon or wallmart can survive with getting richer and richer but that is not correct, when your workers go hungry, they are not going to use you.

We need to find a way to bring money back to poor people and help them get better instead of forcing people to work at 2 different jobs to survive.

I have recently read somewhere that one dude has 5 jobs, he has one job that he wakes up at 4 am and works until 1 pm, another job that starts at 2 pm and ends at 8 pm and he drove uber after that, he also had a part time gig for two days a week for covering when he has 1 day-2 day breaks from his regular job because they are 5-6 days a week jobs, so he covers his free days with another job. Dude was not making too much money, that dude was literally barely living.

[gentlemand]

Well if some stocks fall because of it then I can see bitcoin and ethereum taking a bit of an advantage over this since they've proved to be 'fairly' stable so far while the other markets haven't been and even quite a bit more prosporous...

If it becomes clear that the economic party is officially over then we'll see what crypto is finally made of in such conditions. Drippy fecal matter is my guess. I can't see it happening from one event like this even if it does have repercussions. I guess we'll see in the coming weeks.

[Harlot]

It's the Coronavirus for sure, we really don't need to dive more into this in order to find a connection since it's already in front of our eyes. And what is that connection? It's simple the words “Made in China” is something that we just need to remember, products of companies like  Apple, Nike, Tesla, Intel, P&G and hundreds more of US companies are made mostly if not all in China. Of course with the annoucement of factories being forced to shutdown would not only create a scare in the global market including the US but also affect their revenu potential directly. As of right now their FUD is something caused by not only the noise surrounding the Coronavirus itself but also the fundamental performance of these US companies.

[jackg]

It's the Coronavirus for sure, we really don't need to dive more into this in order to find a connection since it's already in front of our eyes.

This came up in my youtube feed recently: https://www.youtube.com/watch?v=-HofvVfSSaI

I don't know if much has developed, but the market normally are the first to take things seriously so I doubt it's that still.

If it becomes clear that the economic party is officially over then we'll see what crypto is finally made of in such conditions. Drippy fecal matter is my guess. I can't see it happening from one event like this even if it does have repercussions. I guess we'll see in the coming weeks.

Might be nice if real estate starts to colapse in this country. I'd say the higher price of housing makes companies put quality into the products they produce but it doesn't anymore...

And yeah once other markets see a correction some funds will move into bitcoin, espeically since the recent weeknesses in gold these days since it's overinflated so much...

[Harlot]

It's the Coronavirus for sure, we really don't need to dive more into this in order to find a connection since it's already in front of our eyes.

This came up in my youtube feed recently: https://www.youtube.com/watch?v=-HofvVfSSaI

I don't know if much has developed, but the market normally are the first to take things seriously so I doubt it's that still.

Right now there is still a lot of possibilities but even US companies are already admitting that the Coronavirus is the main reason why their stock prices drop. Aside from them having factories in there, China is also one their biggest market and there is no denting that their revenue potential is already taking a hit because of their current situation. And like I said if things will get worst there we might see an even bigger drop in the global market.

[jackg]

I did see a report earlier on the news that was saying if areas are put under quarrenteen, fixed salary workers are still entitled to their pay from the company... I'm not sure how the sick pay chema works here but I can see thst causing huge issues for some small companies if they have to pay staff to not work.

[Linkkoin]

I have a feeling that drop wasn't due to any virus.  The stock market has been on a tear for years now and I'm surprised we haven't seen more of these 3-4% corrections--and hell, I remember when the S&P 500 was stuck below 1000 for the longest time.  I'm sure a big event like a viral contagion can affect things, but I just don't think it's that in this case.  Could be wrong, of course.

Self-fulfilled prophecy. To be honest many stock investors even a year ago had been saying that the new stock crisis is already late. Depending on the measures taken by the authorities and the time of travel ban in countries, the virus can impact the economy by somehow disrupting the demand-supply chain (because if factories are not working due to staff shortage, production will be halted). If eg. car manufacturers because of that will be able to produce for few months in a row 50% or less of planned vehicles, this could trigger the panic sell-off on a huge scale capable of starting that crisis.

[STT]

Its true China is the backing to many global firms  but the actual virus isnt so deadly to working age people.   It might kill but not to sound too heartless about it, but it would mostly kill those who are in poor health anyway.   Otherwise this isnt that deadly an issue, I think the vast majority recover.   Obviously they need to develop a kind of treatment to issue and thats the 'cure' the market wants.

The wider issue is the knock the virus gives to business, it wouldn't matter normally but we've been rising for years in price but the actual good health of companies is over stated due to weak money, loose monetary policy.     This natural deflationary event is a fly in the soup to central banker printing presses.   The initial reaction is knock the price of everything seems like.

BTC price is back to the 200 day average and its gone further then I thought it might initially but people will sell anything and alot of traders do so with borrowed money, hot money is very much a thing where QE is so prevalent.   We benefit from that so its only fair BTC takes a knock too.    Maybe Tone Vays is gonna be right after all
   My normal take would be to expecting a sell to relent and we recover upwards to confirm the previous action.   To retrace some is normal but first it has to see some pressure release, I'm looking for recovery above 200 day just on buoyancy grounds nothing to guess bearish or bullish after.

[exstasie]

The carnage continued today. The S&P 500 is down another 3.5% from Monday's close.

Let's get a little perspective though. Here's a look at similar (or larger) selloffs that occurred over the past 2 years. After each one, the market eventually continued on to a new ATH:



The 3K area is an important S/R level and also a psychological level. I expect a strong reaction off that area. I'm still bullish on stocks in the intermediate and long term, and I believe that will encourage continued bullish behavior in BTCUSD too.