QuantNomad

4th worst week for S&P. What's next?

TVC:SPX   מדד S&P 500
So it was a pretty hard week for the market. S&P lost 11.5% during this week. It's 4th worst week (Monday to Friday) for S&P for the last 50 years from 1970.
Question is what will happen next, let's look at the worst weeks in history and what happened the next week after the drop:

1. 2008-10-06 → 2008-10-06; P&L: -18.2%; Next Week P&L: 4.6%
2. 1987-10-19 → 1987-10-19; P&L: -12.2%; Next Week P&L: 1.44%
3. 2001-09-17 → 2001-09-17; P&L: -11.6%; Next Week P&L: 7.78%
4. 2000-04-10 → 2000-04-10; P&L: -10.54%; Next Week P&L: 5.75%
5. 2008-09-29 → 2008-09-29; P&L: -9.4%; Next Week P&L: -18.2%
6. 1987-10-12 → 1987-10-12; P&L: -9.12%; Next Week P&L: -12.2%
7. 1974-09-09 → 1974-09-09; P&L: -8.71%; Next Week P&L: 7.58%
8. 2008-11-17 → 2008-11-17; P&L: -8.39%; Next Week P&L: 12.03%
9. 2002-07-15 → 2002-07-15; P&L: -7.99%; Next Week P&L: 0.6%
10. 1986-09-08 → 1986-09-08; P&L: -7.91%; Next Week P&L: 0.67%

As you can see in only 2 cases from 10 drop continued next week, in all other cases market was flat or recovered the next week.
So I think if there won't be any other bombshells in the news related to coronavirus, markets should be relatively calm.
However I don't like coronavirus dynamics in Europe and US, so there is a chance to worsen panic.
If you want to track coronavirus statistics you can use Worldometers website: www.worldometers.info/coronavirus/

My First Live Course: qntly.com/101
Pine Programming v5: qntly.com/pineprog
Adv.Pine Use-Cases: qntly.com/advpine

Hire Me: qntly.com/hirepine
Telegram: qntly.com/tel
כתב ויתור

המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.