On analysis of the free fall in S&P 500 Futures, I find that the impact of the coronavirus looks much bigger than the U.S.-China trade war; which may push the global equity markets towards a recessionary zone.
There is no doubt that the growing cases of corona infection have created a global threat to trade, but this has also created a major threat to global equity indices which were testing new heights till a few days back.
Despite a plethora of attempts to find immunity against the deadly virus, global equity indices have come under tough bearish pressure from continuous selling spree.
No one knows that how long it will be before these efforts will see final success in controlling the coronavirus, but the economic dents, caused by the pandemic will continue to hurt global economies for a long time in future.
Finally, I conclude that this free fall may push the S&P 500 Futures below the level of 2828; which confirms an entry into a recessionary zone.
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SPX: Will Impunity Continue, While Attempting Immunity From Corona?
Disclaimer: This analysis is purely based on the technical observations. I do not have any position in Natural Gas. One can create position in Natural Gas at his/her own risk.