There is one "green shoot" in U.S. markets as of Friday's close.
The following heatmap shows the percentages of stocks within the Sectors and Major US Indices that are currently trading above a variety of moving averages.
The one "green shoot" is the percentage of stocks in the Energy Sector now trading above their 5-day MA...a refreshing change in a constant sea of red for the past weeks. The heatmap shown in my post of February 29 was completely devoid of any green.
You can quickly see which of the Sectors and Major Indices are the weakest and strongest of the weak by which ones have the least/most stocks above their 200-day MA.
With regard to the Major Indices, the Nasdaq 100 is the strongest, while the Dow Composite, Dow Industrials, Dow Transports and Dow Utilities are the weakest.
The following monthly chart of the SPX shows the RSI at a 10-year low of 35.77, while price nearly hit February 2017 lows.
This downward plunge shows no signs of slowing any time soon.
The following percentages-lost graphs taken from February 19 show the destruction that has occurred in just one month in the Major Indices and Major Sectors.
The Small-Cap and Transport Indices and the Energy and Financial Sectors have suffered the most.
MY 2-CENT SERMON:
Markets are like gardens.
What shall we harvest from our gardens...sustenance or weeds? As we sow, so shall we reap. Are we tenders or raiders? Do we prepare the soil and provide nutrients and water for the seeds, or do we sow despair and destruction? If we love our gardens, they will love us back.
So, too, if markets continue to be raided, they will become barren beyond recovery.
"A bit of fragrance clings to the
hand that gives flowers."
-- Chinese proverb
* UPDATE Sunday, March 22...
Here's how U.S. Futures Indices opened Sunday...
And, how World Indices, Commodity and U.S. Indices Futures markets are trading Sunday evening (9:15ish pm ET)...
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| N.B. WTI Crude Oil's "green shoot" is still holding (barely) |
What a time for Democrats to play political games!
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| Source: thehill.com |
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| Click link to watch the video |
WHAT'S NEXT?
Global markets are rapidly vaporizing as world leaders, financial experts, and health officials struggle to come up with solutions to mitigate the enormous health, economic, and financial fallout from the coronavirus pandemic.
The next major level of support for the S&P 500 Index (SPX) is the 11-year 50% Fibonacci retacement level at 2030, as shown on the following monthly chart.
Major resistance lies above at 2350 (40% Fib level).
Monday's pivot point support and resistance values/targets for the SPX are shown below.
Note that:
- tonight's price on the S&P 500 Futures Index has already fallen below tomorrow's SPX S2 pivot point value
- the SPX 50% Fib retracement level is below the SPX S3 pivot point value
- the SPX 40% Fib retracement level matches that of the SPX pivot point for Monday
We'll see whether the SPX opens down and continues to drop on Monday, or if price snaps back to, at least, 2350 (confluence of the 40% Fib with the pivot point).
