Fears about the potential impact of the coronavirus pandemic have crashed the stock market with one of the sharpest one-week declines in the history of the S&P 500, making its chart look like that of an illiquid altcoin.
How does the comparison fare? And why are investors on the stock exchange so agitated that the sell-off is so close to that of a crypto asset with altcoin with low liquidity?
Stock market and crypto investors remain scared by the coronavirus
Panic over the impact the fast-spreading virus could have on the global economy, from closing manufacturing plants to restricting travel to parts of the world that are particular hotspots for potential infections.
The death toll is rising and health officials are struggling to prevent the virus from spreading.
Related reading | Has the coronavirus put an end to the Bitcoin Safe Haven narrative?
The spread has also reached the world of stocks, cryptocurrencies, and more.
Financial markets have been a complete and utter carnage for the past week as fears that the coronavirus will reach the height of the pandemic mount.
Even the S&P 500, a key barometer of general health for the largest companies in the United States, is down nearly 300 points in the last month.
Last week’s sharp decline has caused the otherwise stable stock index to resemble the price chart of an illiquid altcoin that a random crypto whale decided to sell its holdings with massive market sales.
S&P 500 price chart is similar to Illiquid Altcoin Dump
In fact, the graph looks very similar to that of a Matic IEO token when viewed in different time frames.
Matic gained notoriety a few months ago when the altcoin experienced a massive pump and dump.
When comparing the two charts, the price action appears to be similar. Given what happened to Matic in the trading sessions that followed, the dump in the S&P may well be far from over.
Although the stock market declined on most major indices, the Dow Jones Industrial Average – another major US stock index – just triggered a TD 9 buy signal on the daily timeframe.
Related reading | The trading volume of the altcoin market hits a new crypto all-time high
Other big stocks and their indices are also ready to print a perfect TD 9 buy setup in daily timeframes, including Apple and the S&P 500 itself.
Since these normally reliable assets have fallen sharply, they could very well rebound with surprising strength. However, unless the coronavirus is better contained in the coming days, the S&P 500 could continue to look like an illiquid altcoin price chart due to mounting panic selling an already overdrawn stock market.