Lack Of Round Number Relief?
We all make our own assumptions about where we think the market may start to bottom. My thesis was that would commence once we had a major sporting event give us a definitive date as to when affair may take place. For me that came yesterday when the French Open, one of the premiere tennis tournaments in the world, rescheduled from its May start to late September. Keep in mind this is in Europe obviously where the virus has hit hard, and is a hot bed. There is a huge amount of organization that goes into the planning of the tournament, so someone must be very confident that it will be under control by then. Of course the virus may not be the sole reason why this market has imploded, as the oil shock, hedge funds blowing up (we have not heard of any yet), and the fact that a sizable correction was overdue. Below is the chart of the Nasdaq which is now 17% BELOW its 200 day SMA. Has this overshot to the downside? Probably but markets can remain irrational longer than we can remain solvent.