The end of February was brutal for traders that were not prepared for the breakdown in the U.S. stock markets. The breakdown in price actually started on February 20 and 21. Most traders didn’t pay attention to these minor downside price rotations in the Technology () and the Financial sectors. The early downside price rotations in key sectors gave traders a bit of a warning that the markets were starting to shift away from the earnings-driven rally that had set up the recent peaks.
The other item that concerned the markets was the spread of the coronavirus into Italy, Iran and other areas without known contact to areas of the virus origin. Obviously, there had to be some process of contact for the virus to spread – but there are concerns now that the virus could be active within various societies throughout the incubation period and spreading to people in densely populated cities in these areas. The idea of a “super spreader” event becomes very real if societies are…
