On an Ugly Day for Markets, This Is the S&P 500 Level Investors Need to Watch Closely, This Trader Says

Black Friday actually.

Some dismal headlines salute those investors who did not extend the Thanksgiving holiday into a long weekend, with news of a new type of COVID – B.1.1.529 – discovered in South Africa. It is the most heavily mutated to date, which means that it can be more transmissible and less effective against variants.

It’s exactly what investors didn’t want to hear as we approach two years since the pandemic first reared its ugly head in China.

Everything related to risk is caught in the clutches of deep selling, which could make today’s session either a bargain basket or a case of a cautious buyer.

a Team at Saxo Bank Traders are advised to “treat with extreme caution, given that the risks of near-term volatility are severe at the unfortunate timing, particularly given the sudden shift in focus that this news brings relative to recent topics and the current market situation.”

Friday’s only mercy is that it’s a shorter Wall Street session.

for us Today’s call Comes from Sven Henrich, founder Northman Trader, who got up early, is scanning the charts and presenting the levels that investors need to watch. And the winner, so to speak, of the S&P 500
SPX,
+ 0.23%

It is 4550, the high for September.

“As long as this area holds the bulls fine as this could simply be a back-test of the breakout,” he said in comments via email. “Continuous downward movement and the bulls are in big trouble, but if this area continues overall, I would assume a year-end rally is still possible.”

Some current problems in this market – it’s expensive on one metric, the index forward P/E is around 23. Investors are fairly long stocks, with more inflows in stocks this year than their sum over the past 19 years. See below for a chart from Bank of America.

The last word goes to David Durand, founder and market analyst at The Wall Street Sun Report and the Storm, who has some harsh words for this panic-stricken market.

The response to these mutations should be the same as the response to any mutated virus. Over the years, we’ve built new vaccines based on new mutations in influenza. It’s no different for Covid and it’s not a threat in that sense. Can you imagine if the stock market would have responded every time there was a new flu variant that required a new vaccine? Durand said in the comments via email.

“We don’t even know if we’ll need a new vaccine yet and they’re speculating today. That’s an excuse to sell, not a reason to sell. If you want to sell for a good reason, that’s fine, but if that’s all you have, you can also go to Las Vegas.” And put all your life savings on the red,” he said.

markets

Dow Jones futures contracts
YM00,
-2.20%

They dropped 800 points, with the S&P 500
ES00,
-1.67%

Nasdaq 100 in the future
NQ00,
-0.94%

Also deep in the negative zone.

European stocks
xxxp,
-2.59%

Stumbles, as airlines sink, Asia sees ugly session, with biggest losses in Hong Kong’s Hang Seng district
HSI,
-2.67%
And
which fell 2.6%. Treasury returns
TMUBMUSD10Y,
1.526%

falling apart, gone
GC00,
+ 1.55%

with the yen rising
us dollar against japanese yen,
-1.31%

and the Swiss franc
USDCHF,
-1.18%
.

oil
CL00,
-6.29%

and bitcoin
BTCUSD,
-8.79%

also fell back.

commotion

The World Health Organization will hold an emergency meeting on Friday to discuss the newly discovered COVID variant, which can be called “No”. South African Health Minister Jo Bhalla sound the alarm On Friday, on a new variant that contains 32 spike protein mutations — double those of Delta. The United Kingdom and Israel have imposed travel restrictions from South Africa and other countries in the region.

delta
from,
+ 0.40%
And
American
AAL,
-0.05%

and UAL
UAL,
+ 0.06%

All shares fell 7% in the primary market, after the sale of Deutsche Lufthansa
LHA,
-10.28%

and owner of British Airways IAG
IAG,
-13.04%
.
Vaccine makers including Pfizer
PFE,
-0.37%
And
modern
mRNA,
-1.08%

and AstraZeneca
AZN,
-0.69%
And
Of course, they go the other way.

Diddy Global
Didi,
-0.12%

5% has been shut down by China’s technical watchdog, it has asked the combined cruise giant to delist from the New York Stock Exchange, Bloomberg reported.

Amazon
AMZN,
+ 0.01%
And
Walmart
WMT,
+ 0.50%
And
targeting
TGT,
-0.17%
And
kohl
KSS,
-1.53%

etc are all in the spotlight as it is one of the biggest shopping days of the year. Noticeable, the difference
GPS,
-24.12%

And Nordstrom
JWN,
-29.03%

suffered heavy losses on Wednesday after some bleak results.

graph

Stocks have seen record inflows of $893 billion this year, surpassing a combined $785 billion of inflows seen over the past 19 years, Bank of America said, in its Flow Show report. This is the graph:

random readings

Chipotle ad during Thanksgiving Football made people talk, if not confused.

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