Selling pressure increased substantially this week with fear of the virus interrupting supply chains and corporate earnings. While the move into the all-time highs was weakening structurally, suggesting some type of correction was imminent, no one could have predicted the extent of the current move lower. The issue now is fear. Any additional bad news will continue the selling. On the other hand, good news or even an interest rate cut by the FED will present us with a tremendous buying opportunity.
On Friday, there was a good buying spree going into the close. All of the Indices closed near the high of the day, suggesting they may go higher on Monday. However, there were no other technical signs a bottom was in place. Therefore, approach the beginning of the week with caution. I want to buy this market in here, but a continuous spread of the virus will bring extreme selling pressure back to the forefront.
DAILY BRIEFING 200229 from Joe Mertes on Vimeo.