What goes up must come down. This is the worst drop in market history in terms of magnitude. Yesterday was the largest single-day drop in many indexes. We’ve watched the market blow through level after level.
So, where does it end?
The crazy week continues as reports are showing this is the worst week since the financial crisis in 2008. Like I said yesterday, volatility is high, so options will be a lot more expensive and moves will be a lot quicker.
Right now, much of the moves are based on global news and the corona virus, versus any individual company news. That makes the activity on the scanner less meaningful right now.
In fact, many “good news” releases that I’ve seen this week are treated as an event to sell and get out. The markets are opening up down another about 300 points and it’s anyones best guess where we go today.
We could rally 500 points or fall another 500.
My gut tells me not many people are going to want to hold over the weekend on the long side, unless we get some intraday positives headlines.