Despite Rate Cut and ongoing "non-QE" which - since last September has reached about half a trillion USD in size, market continue to sell off due to the ripple effects that the Corona Pandemic will pose on global supply chains.
A first plausible interim support area would be around 2780:
• 23.% Fibonacci retracement of the entire bullmarket since 2009
• oversold based on both - weekly channel view and also from a daily chart view
• recent lows/congestion areas
Next and likely much stronger support would be around 2525 area:
• coincides with the secular uptrend line coming up from 2009
• 33% Fibonacci retracement of the 2009 Bullmarket.
• Dec 2018 panic low
Should a true panic evolve, then we might even temporarily drop down to the 50% Fibo Retracement region around 2050-2120
which would coincide with the 2015 highs and the lower line of a possibly forming broadening wedge (violet “megaphone” lines, which would be super- bearish in a longer term context).
A first plausible interim support area would be around 2780:
• 23.% Fibonacci retracement of the entire bullmarket since 2009
• oversold based on both - weekly channel view and also from a daily chart view
• recent lows/congestion areas
Next and likely much stronger support would be around 2525 area:
• coincides with the secular uptrend line coming up from 2009
• 33% Fibonacci retracement of the 2009 Bullmarket.
• Dec 2018 panic low
Should a true panic evolve, then we might even temporarily drop down to the 50% Fibo Retracement region around 2050-2120
which would coincide with the 2015 highs and the lower line of a possibly forming broadening wedge (violet “megaphone” lines, which would be super- bearish in a longer term context).