Wednesday, March 11, 2020

WHO Declares Coronavirsus a Pandemic...SPX Closes at ST Support...A New Bear Market?


© 2020

The WHO, on Wednesday, declared the coronavirus outbreak a pandemic.

On Feb. 25, 2020 Science News wrote the following on coronavirus and pandemic.

“According to the World Health Organization, a pandemic is the worldwide spread of a new disease. It’s most often used in reference to influenza, and generally connotes that an epidemic has spread to two or more continents with sustained, person-to-person transmission.

The severity of illness doesn’t fall under the WHO’s strict definition of a pandemic — just the disease’s spread — though the WHO may take the overall burden of the disease into account before declaring a pandemic. As the top global health agency, the WHO is relied upon to be the first to make the pandemic declaration.”


The DJI closed down today just over 20% from its high on Feb 12.  Many are now calling the four-week downtrend a bear market.  If one chooses that point of view, then the next uptrend will be a new bull market.

All eleven sectors were lower on Wednesday, led by XLV, XLC and XLK

SPY down 14.06 at 274.36 on 275.5 million shares, above average volume.  Down on lower volume.
VIX up 6.60 at 53.90

UNH, CVX, KO led the DJIA, 0 advancers, -30
DLR, AON, AKAM led the SPX, 9 advancers
GILD, TMUS, AMD, WLTW led the NDX, 6 advancers


Long term up trend intact.  3-day short term trend is down.

Up:
Down: QQQ, SPY, DIA, IWM,

Breadth weakened, on Wednesday as decliners led 2,857 to 169 on the NYSE and led 2,937 to 375 on the NASDAQ

The SPX MFC green line is pointed down at 16 and is short-term bearish

Uptrend sectors
Neutral sectors:  XLK, XLV, XLU, XLRE, XLC,
Down trend sectors: XLP, XLY, XLI, XLB, XLF, XLE,

The 6-month intermediate trend is down a little.  The ten-day trend is down.

3-month Intermediate Term Market Trend: Down
3-day Short Term Market TrendDown


6 of 100 NDX stocks closed higher on Wednesday.

4 NDX stocks are above their 30 DMA:  GILD, REGN, JD, TTWO,

NDX Stocks to Watch on Thursday:
Moving Above 30 DMA = 0

Moving Below 30 DMA = 3
CSGP, DLTR, ORLY,


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