Coronavirus fears roiled global equity markets, with the benchmark US equity indices skidding sharply lower - Dow shed -1031-points or -3.56% (27,960.80), with the index recording its second-biggest daily point drop in its 124-year history. The Dow closed well below its 50-day moving average (28,805.54) and slightly above its 200-day moving average (27,224.03). The broader S&P500 -3.35%, breaching its 50-day moving average (3,275.90) for the first time since October. The technology centric NASDAQ -3.69%. The selloff marks the first time all three major benchmarks each fell by at least 3% on the same day since 4 December, 2018. Last night’s falls also wiped out this year’s gains for the Dow (now -2%) and the S&P 500 (now -0.15%). The Nasdaq still sits +2.8% higher for the year. Bespoke Investment Group make the case that, over the past 11 years, declines of more than 2% for the S&P 500 have tended to see healthy rebounds, particularly when that daily slide happens on a Monday - “Since March 2009, there have been 18 prior 2%+ drops on Mondays, and SPY has seen an average gain of 1.02% on the next day (Turnaround Tuesday).”
