10 Days Later? Coronavirus Hysteria Only 7th Worst 1-Day Plunge Since 1987

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.

overlook

So, while Coronavirus cases increasing, the morality rate is low. So far.

coronav

There is not even a red-flashing warning from the Hindenburg Omen that “predicted” the 2008 stock market crash.

hindyomen

The NYA is below its lower Bollinger Band indicating that a rally is forthcoming.

nyaboll

Wow, that is one steep Elliott wave.

nyaew

And the Ichimoku cloud is far above the latest reading for the stock market, indicating a rebound is forthcoming.

inchicv

And we see a declining VIX index as Friday trading concluded.

vixdrop

So, what will happen Monday morning or this coming week?

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