Stocks open sharply lower. Coronavirus fears continue to dominate

Technical Analysis

Author: Greg Michalowski | sp-index

NASDAQ index leading the move to the downside. The Vix is up above 32 and highs the December 2018 high of 36.2

The US stocks are opening sharply lower on continued coronavirus fears. THe moves to the downside being led by the NASDAQ stocks. Microsoft is down -3.27%. Apple is down -3.01%. Amazon is down -2.61%. Facebook is down -2.93%

All 3 major indices are entering a correction territory at -10% since the high

The snapshot of the major indices are showing
  • S&P index -66.29 points or -2.13% at 3050.10
  • NASDAQ index -242 points or -2.7% at 8738.25
  • Dow industrial average -498 points or -1.85% at 26459
The Vix index (or so-called fear index), is trading at 32.56. That is up 18.14%. The December 2018 high when the stock market was getting thrashed, the index moved up to 36.2.

The Vix index
Looking at the S&P index, it is down testing its 200 day moving average at 3046.97. The low price just reached 3046.73 and bounced.   Risk can be defined and limited against the 200 day moving average. Traders leaned against the level with likely stops on a break below. Watch that level in trading today

S&P index tests its 200 day moving average and bounces

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