Markets have been falling after the corona virus began spreading beyond China around February 20, 2020. Although I think the selloff is an overreaction, it may have pushed markets to technical levels, where even if the virus is contained or eliminated in the near future, more selling may occur. The fed recently cut rates again, and with markets at all time highs, I don't understand or agree with the move. If equity indexes fall much lower they will trigger patterns with target prices 15-20% below recent lows.
Note: There is a lot of "noise" (target prices and necklines denoted yellow indicating that pattern has hit) on these charts. Often hit target prices and their necklines act as support/resistance, so they are still on there for future reference.
The S&P needs to hold recent lows to avoid
further selling towards 2858.75, 2746, 2706, and 2389.
It is also close to the level from 2018 labeled
"If we close above, new highs likley".
If we start closing under that level now,
I will expect selling towards 2389.
The Russell made new lows Friday and closed below the neckline for 1207.4
It also has a target price at 1218.2 that has triggered.
Much more selling below these current levels, I think this area will be inevitable
Similar to the S&P, the Nasdaq needs to avoid breaking recent lows
to avoid triggering target prices lower at 7736.75 and 6605.
The Dow needs to hold recent lows to avoid further selling.
NOTE: I drew another neckline because the original neckline (probably drawn on an hourly chart)
included excess on the daily chart. When I drew it on the daily chart without the excess, the pattern hit (target price 29463)
For some reason my drawings for bonds have dissapeared,
but it doesn't matter because any head and shoulders patterns lower would be nulled.
Bonds gained 6.69% on Friday, which as far as I know, and per this chart, is the biggest move in bonds I've seen.
VW to 243'25 is triggered.
The Dollar came very close to 99.890 before turning lower.
vM to 94.600 is triggereed.
Gold is trying to move higher and null vM to 1452.9
Copper has triggered vM to 1.85
It is still above the neckline for 3.7840 but much more selling will un-trigger.
Lots of "noise" on this chart, but oil looks like on its way to 37.69 and has triggered vM's to 24.39 and 19.91
Lumber has triggered vM to 352.7 and much lower will trigger 315.9
VIX
