Omicron Variant Weighs on Stocks

29 בנוב׳ 2021

Stocks plummeted off of renewed coronavirus panic over the Omicron variant, with 23 different spike proteins. It is currently evading all vaccines, and poses 'very high global risks' as per the WHO. This new boogeyman has permeated through the markets and we are likely to see lower levels in stocks until the risk has been priced in. Today is the Monday after the US holiday, so the markets are likely to jostle for direction over this issue. We smashed through the 4600 handle, finally finding support at 4580, where a green triangle on the KRI confirmed the support. Currently, we are testing 4632, and 4649, but the Kovach OBV is still very bearish, so it would be fomo to pile into a long trade at this point. We should see continued support from 4580, but if this does not hold, we have a cluster of levels below to provide further support down to 4545. The next target will be 4693 if we catch a bid, but we have to break 4649 first.