China’s Wuhan corona virus spreads to the stock market and triggers the deadly Hindenburg omen

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "The spread of the Chinese corona virus has infected them US stock marketThe spread of the Chinese corona virus has infected the US stock market and triggered a frequently bearish technical chart formation.

Break out of the mask or short position traders.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "With the steep sellout of the market on Monday – Considering fears that the corona virus is affecting the economy – the closely watched Hindenburg-Omen was activated on the S & P 500, strategists from Sundial Capital Research emphasized. The guidelines of the Hindenburg-Omen state that the market must be on an upward trend, that it must have a large number of stocks that reach 52-week highs and 52-week lows and show negative diverging dynamics. “Data-reactid =” 17 “> According to strategists from Sundial Capital Research, a strong sell-off in the market was recorded on Monday, the fifth day in a row, given fears that the coronavirus is affecting the economy an upward trend, there must be a large number of stocks that hit 52-week highs and 52-week lows and show negative divergent momentum.

According to Sundial Capital Research, this dynamic came into play with the rapid declines on two consecutive days of the market.

And according to historical data, it could mean bad news for investors.

Sundial’s 1970 data shows that returns for the S&P 500 were negative one week, two weeks, one month, two months, and three months after the Hindenburg omen was triggered. The average return on the S & P 500 three months after the Hindenburg Omen reached 2.2%.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Let's take a step back, the market has In There has been a violent rebound in the past four months and a parabolic move has been going on since October, and if such steps are taken the market will look for excuses for Levine consolidation on Yahoo Finance The first trade, “data-reactid =” 21 “>” Let us take a step back, the market has declined significantly in the past four months. We have had a parabolic train here since October. When you get these moves, the market looks like the corona virus is like no other, ”said BNY Mellon’s chief strategist Alicia Levine at Yahoo Finance’s The First Trade.

Miller Tobacco strategist Matt Maley added: “The market was so overbought. If it does so on the charts, it will take a retreat before we can say that the worst is behind us. “

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Brian Sozzi is an editor and co-moderator of The first trade at Yahoo Finance. Watch the first trade every day Here at 9:00 p.m. ET. Follow Sozzi on Twitter @BrianSozzi and further LinkedIn,“data-reactid =” 23 “>Brian Sozzi is an editor and co-moderator of The first trade at Yahoo Finance. Watch the first trade every day Here at 9:00 p.m. ET. Follow Sozzi on Twitter @BrianSozzi and further LinkedIn,

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