No, the Coronavirus is not the same as the film “28 Days Later” where a virus turns people into flesh-munching zombies.
True, the one-day drop on February 27th was -11.7%. But we don’t know yet what the return will be after 10 days. But if history is a guide, only the correction of 10/10/08 was followed with continued declines out to 90 days.
So, while Coronavirus cases increasing, the morality rate is low. So far.
There is not even a red-flashing warning from the Hindenburg Omen that “predicted” the 2008 stock market crash.
The NYA is below its lower Bollinger Band indicating that a rally is forthcoming.
And the Ichimoku cloud is far above the latest reading for the stock market, indicating a rebound is forthcoming.
And we see a declining VIX index as Friday trading concluded.
So, what will happen Monday morning or this coming week?