Why one quantitative analyst says stocks may have seen their ‘darkest day’

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On coronavirus concerns and the market: “If the market gets the sense that the global economic downturn scenario is excessive and sentiment follows past patterns, the current situation could in hindsight be seen as the darkest day.'

Seeing none in the financial sphere, however, traders are left staring at headlines over the latest coronavirus news and trying to compare current events to how the market reacted to past health scares.

The selling that has wiped out over 6% in the S&P 500 SPX, +0.45% in two days has sent its measure of U.S. equity sentiment two standard deviations below its rolling average. That means yields could fall much further as this indicator “tends to plunge deeper into overbought territory” at “climactic” bottoms. Yields, as we always remind, move in the opposite direction to prices.Every permanent Hong Kong resident will get a cash handout of about HK$10,000, or $1,200, as that economy reels from the twin impact of the coronavirus and political protests.

 

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