Markets are still working through their declines as they seek a point of seller's exhaustion. The Russell 2000, as the index of speculative stocks, is the one to watch for leads. Today's 6%+ loss undercut the prior low and left the index grasping for a low. On the plus side, selling volume was lighter than yesterday's buying volume and the index is now 19% away from its 200-day MA; if it gets to 21% - which could happen tomorrow - it would leave it in the 1% zone of historic weak action and should be considered an incredible buying opportunity for investors with a multi-year time frame; even now, it has already surpassed the 5% zone, and investors should be active accumulating Small Cap stocks. Short term traders may also reap benefits if they have the stomach for the volatility.

Another big hit to markets spent markets spinning lower. The Russell 2000 took the worst of it with a 9.7% loss, closing at the low of the day on higher volume distribution. The loss has been so strong and so quick it has moved down to the 5% zone of historically weak action dating back to 1987; this is a 'buy' zone opportunity, although I would like to see some stability in price action before confirming this as swing low. However, if you are investor with a long term window, now is a time to be building up a position.

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