Stocks Continued To Melt On March 23 With No End In Sight
Stocks continued to melt on March 23, with the S&P 500 dropping another 3%. It feels as if there is no end in sight.

Stocks Continued To Melt On March 23 With No End In Sight

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MARCH 23, 2020



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S&P 500 (SPY)

Stocks continue to melt, even after the Fed just launched QE infinity. The S&P 500 fell another 3.0% and is trading around 2,235. It managed to find some support around 2,190 to the start of the day, but that’s about the only positive thing I can point to.

The strangest thing I have seen recently is this dual pattern forming in the S&P 500. The trading channel is a force and one that appears to be very strong. But on top of that, there appears to be another pattern forming within that channel.

It appears that a falling wedge pattern is forming, and that may mean that the index is rising to the upper end of the range of the trading channel around perhaps back to around 2,270. What’s even crazier is it would only take us back to where we were to start the day.

S&P 500, spy


The VIX managed to come down some today, falling to around 65. That is still too high and doesn’t suggest things are getting any better.


Semis (SMH)

The semis managed to have a pretty decent day, with the SMH rising. But again, like the broader indexes, the downtrend strong for this group as well.


Nike (NKE)

Nike has dropped to prices not seen since 2017, and likely isn’t finished falling, with the next significant level of support down at $50.60.

nike, nke

Square (SQ)

Meanwhile, Square has been destroyed and can hopefully find some support around $33.50.

Square, sq

Disney (DIS)

Disney has also been hurt, and they are going to struggle, given a big portion of their business has been hit the hardest by the virus. The stock so far has stopped at $78 and could be heading lower towards $70.

disney, dis

Bank of America (BAC)

Bank of America is now falling to support at $18.25, a price it hasn’t been at since the election, closing all gaps takes it $17.

bank america, bac

ok that’s it.


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