The bounce has stalled and now it's a question as to whether the swing low from February is one to be defended, or is simply a swing low in a measured move lower; a move which could see 2018 lows tested - although this would be a big stretch and a likely 'worse case' scenario. Again, just to reiterate, the 2009 low is a generational (55 year+) low and the rally which emerged is one which will see long (long) term gains. This is a sharp move down, but it won't last. Markets may move sideways for an extended period, which will 'feel bad' but is ideal for those looking to accumulate a position over time - such as in a pension or 401K. With that in mind, we have to deal with the present. The Coronavirus is here to stay (where are the anti-Vaxxers now...). We have a Chinese economy which is still trying to come to terms with the infection and the eventual economic fall out. We have a UK and US economy led by the most incompetent group of 'leaders' for whom

Yesterday's return to selling had the look of a tiring bounce, but this was swiftly undone by today's buying. Market rallies are still in play with 20-day and 50-day MAs as overhead resistance. The S&P rally is aiming towards converged 20-day and 50-day MAs, although buying volume is lighter than recent selling. Technicals are all net bearish, not surprisingly, so we will be looking for bullish divergences when traders eventually return to selling

These big reaction moves always seem to happen when I'm afk. Anyway, markets are attempting to price what impact the Coronoavirus will have in both the short term and long term, but after 10% declines we now have the dead cat bounce effect. I don't expect the bounce to last with a retest of recent lows likely, but this test could evolve into a slow decline - with buyers reluctant to step in until the impact of world events can be priced in, which is easily a few months away and potentially longer.  If you are looking for an exit, then the next couple of days could be critical. It's hard to see indices make it back to multiyear highs without a containment in the Coronavirus outbreak, so today's bounce seems artificial. The Dow Jones Index added 5% as it accelerates toward its 200-day MA on net bearish technicals. Relative performance remains poor (vs the Nasdaq 100) and until there is a relative advantage it's hard to see it sustaining a strong run higher.

The S&P gapped lower out of its rising channel, following the Dow Industrial Average in its channel break on Friday. The gap pushed below 50-day and 20-day MAs, but it hasn't yet triggered a 'sell' signal in On-Balance-Volume on higher volume distribution.