On analysis of the movements of S&P 500 Futures in different time frames, I find that the coronavirus outbreak looks evident enough to break bulls’ back at the global level amid growing fear of prevailing slowdown due to upcoming hurdles in global exports.
I find that a gap-down opening of S&P 500 Futures on the first trading session of the week of February 9th, 2020 will confirm the outbreak of the virus’s economic impact on global equity markets.
Finally, China’s decision to inject a heavy dose of monetary stimulus might prove one more attempt to extend the pile of debt on the economy; which has been constantly bearing the burden of tariff trade tussle since October 2019. Coronavirus appears ready to push the global equity markets dramatically downward.
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