Coronavirus Was Tipping Point To Overbought Conditions

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the coronavirus was tipping point to overbought conditions. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow set to drop more than 300 points at the open as coronavirus cases outside China surge

Stock futures stateside pointed to sharp declines on Wall Street at the open on Monday as the number of coronavirus cases outside China surged. As of 6:38 p.m. ET Sunday, Dow Jones Industrial Average futures were 323 points lower, pointing to an implied opening plunge of 316.41 points for the index on Monday.

The S&P 500 (SPY) plummeted -3.35% today. All 11 sectors lost at least individually 1%. Technology (XLK) and energy (XLE) led all sectors down with losses of more than 4%. Communication services (XLC), consumer discretionary (XLY), consumer staples (XLP), financials (XLF), healthcare (XLV), industrials (XLI), materials (XLB), real estate (XLRE) and utilities (XLU) all ranged in losses from 1% to 3%.

The Dow Jones index tanked -1031 points (-3.56%) to close at 27,960. The Nasdaq dropped -355 points (-3.71%) to settle at 9,221.

Coronavirus Was Tipping Point To Overbought Conditions

Stocks were crushed on Monday as coronavirus cases spread outside of China, sparking fears to the global economy.

“The second-largest economy in the world is completely shut down. People aren’t totally pricing that in,” said Larry Benedict, CEO of The Opportunistic Trader, adding a 10% to 15% correction in stocks may be starting. He also said some parts of the market, particularly large-cap tech stocks, appear to be over-owned. “It seems like there’s much more to come.”

The coronavirus outbreak that was first reported in China, but has spread rapidly in other countries especially South Korea and Italy, which reported a spike in the number of confirmed cases in recent days.

South Korea raised its coronavirus alert to the “highest level” over the weekend, with the latest spike in numbers bringing the total infected to more than 800 — making it the country with the most cases outside mainland China.

Meanwhile, outside of Asia, Italy has been the worst affected country so far, with more than 130 reported cases and three deaths.

Key Takeaway…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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2/24/20

S&P 500 Sector Graph

Coronavirus Was Tipping Point To Overbought Conditions

S&P 500 (SPY)

Coronavirus Was Tipping Point To Overbought Conditions

Communication Services (XLC)

Coronavirus Was Tipping Point To Overbought Conditions

Consumer Discretionary (XLY)

Coronavirus Was Tipping Point To Overbought Conditions

Consumer Staples (XLP)

Coronavirus Was Tipping Point To Overbought Conditions

Energy (XLE)

Coronavirus Was Tipping Point To Overbought Conditions

Financials (XLF)

Coronavirus Was Tipping Point To Overbought Conditions

Real Estate (XLRE)

Coronavirus Was Tipping Point To Overbought Conditions

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

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