Technically market is broken.....

Market took a beating on Friday and it is not looking healthy technically speaking,

DOW SOX & Russell 2000 closed below 50 DMA...

S&P 500 came within 3 points of breaching 50 DMA barely closing above.

Nasdaq is one day away from breaking 50 DMA...came within 83 points above 50 DMA...

This is telling us that all major Indices may break 50 DMA and below before it is all over....

Will not be surprised IF we test 200 DMA......which is a fair distance below current close.

Shanghai may react the-worst as CHINA is facing a major economic impact from Corona Virus..

CHINA being the number 2 economy in the world can affect whole world in trade and commerce.

CHINA produces / manufactures for many companies around the world, thus economic impact for global economy can be significant.

Air travel to & from China is being curtailed by most nations through travel advisory or flight cancellation...

Only thing that can change this negativity IF we get report from China about containment and slowing spreading of this virus.

For Investors and traders, this calls for patience and staying put for now.

Keep an eye on news flow particularly from China and rest of the world about spreading / containment / reduction.

These things are unpredictable in terms of duration and intensity.

Keep an eye on your own stocks and see IF they are behaving better or worse than market, IF need be take the required step to reduce or eliminate your exposure in that stock.

Good luck with your own analysis and your own comfort level.

BLOG does NOT give buy or sell.

Saleem