Fears over the possible implications of the coronavirus pandemic have caused the stock market to crash with one of the sharpest one-week declines in the history of the S&P 500, making its chart look like that of an illiquid altcoin.
How does the comparison stack up? And why are investors in the stock market so shaken up that the selloff so closely matches that of a crypto asset with low liquidity altcoin?
Stock Market and Crypto Investors Remain Spooked By the Coronavirus
Panic over the impact the rapidly spreading virus may have on the global economy, ranging from its shutting down of manufacturing facilities to it limiting travel to parts of the world that are particular hotspots for potential infection.
The death toll is rising, and health officials are struggling to prevent the spread of the virus.
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The spread has also reached the world of stocks, cryptocurrencies and more.
Financial markets have been a complete and utter bloodbath over the last week, as fears over the coronavirus reaching the point of peak pandemic mounts.
Even the S&P 500, a major barometer of the overall health of the largest companies in the United States has dropped nearly 300 points over the last month.
The steep fall over the last week has caused the otherwise stable stock index to resemble the price chart of an illiquid altcoin, that a random crypto whale decided to dump their holdings on in with massive market sell.
S&P 500 Price Chart Resembles Illiquid Altcoin Dump
In fact, the chart looks very similar to that of an IEO token, Matic, when viewed on different timeframes.
Matic gained notoriety a few months ago when the altcoin experienced a massive pump and dump.
When comparing the two charts, the price action appears to be similar. Given what happened to Matic in the trading sessions following, the dump in the S&P may be far from over.
Despite the stock market sinking across most major indexes, the Dow Jones Industrial Average – another major US stock index – just triggered a TD 9 buy signal on daily timeframes.
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Other major stocks and their indexes are also ready to print a perfect TD 9 buy setup on daily timeframes, including Apple, and the S&P 500 itself.
With how sharply these normally reliable assets have fallen, they could very well rebound with surprising strength. However, if the coronavirus isn’t better contained in the days ahead, the S&P 500 could continue to look like an illiquid altcoin price chart due to an increase in panic selling an already overextended stock market.