We are still in a hunt for a low but there is evidence that markets are finding some consolidation around recent price action - even if the range from high to low for this range is around 10%. The S&P finished with a bullish hammer on Wednesday on a high volume day, today was more of an indecisive 'spinning top' on lighter volume. The S&P is trading 20% below its 200-day MA but a bounce is needed; however, nobody knows when this bounce will emerge. Technicals are not offering much guidance yet.

Markets continued their downward leg in an attempt to an establish a low. For example, the Russell 2000 has already given up 35% from its highs and today's candlestick didn't suggest a capitulation (it looked better on Friday). For many of the indices there are no developing divergences to work with and there hasn't been any semblance of a bounce to establish a sideways consolidation of losses, so we are still looking for a swing low to work off. The S&P did register as an accumulation day and managed a reversal of yesterday's losses, but aside of that there wasn't much more to say.  The S&P has comfortably surpassed the 5% zone of historic weak action, but to hit the 1% zone would require a tag of 2,223.

It has been so long since we have made trading days like the ones we have had the past couple of weeks. Friday was no exception as markets posted 6-9% day gains following comparable losses the day before. One only has to look at the price congestion from earlier in the year and the latter part of 2019 to see how weeks worth of action is now playing out in the course of one day. Nobody knows to what extent Covid 19 will hit this year's earnings, or what the long term effects on consumer demand, supply chain security, and the gig economy will be, but as an acute infection with a relatively low mortality rate (thankfully, this is not Ebola), the recovery should work through quick enough. Aside from the morbidity factors of the disease, the impacts on loss of earnings for gig economy workers will be significant and it will be interesting to see what (if any?) changes are made in the employment conditions for such workers and other vulnerable employees in scenarios like these.  And much

While Presidents typically have little influence in the direct moves in the market - today's loss was pretty much all his. Instead of inspiring some level of confidence, markets spun off in the other direction.  For the Russell 2000, this means in the space of a few weeks the index has plunged to a level last see in June 2017. The damage in the S&P and Nasdaq was not as bad, although still not great, but their respective 2018 lows are still intact. The S&P is currently 18% below its 200-day MA and has pushed into the 5% zone of historic weak price action, last seen in December 2018.  The Russell 2000 is now 27.8% below its 200-day MA, which is well beyond the 1% zone of historic weak action since 1987 (21% below its 200-day MA); while this market may slink or continue to crash lower, we are likely close to a swing low - certainly investors should be fishing for opportunities in Small Caps. The Nasdaq is the most 'resilient' of the indices but now finds itself 14%