S&P 500’s decline makes it chart look like that of illiquid altcoins

The stock market has seen a major crash following the coronavirus outbreak, causing many to believe that the virus might be responsible. As the virus continues to spread around the world, the fear of its potential impact is believed to be the main cause of a stock market decline, with one of the sharpest ones in history being that of the S&P 500. In fact, many have taken to comparing its crash to that of illiquid altcoins in the crypto industry. As mentioned, the virus is continuing to spread, and the death toll is rising higher and higher. The development has caused quite a bit of panic, which is already disrupting the global economy. Manufacturing facilities are shutting down, traveling to the parts of the world considered to be hotspots for infection are severely limited, and the health officials are struggling to contain the outbreak.

Why is the similarity between the charts concerning?

Copy link to section The financial markets seem to be suffering the consequences as well, with some of the largest companies seeing a drop of nearly 300 points in the US in the past month. The drop has been the sharpest over the past week, causing the stock index to look like a price chart of an illiquid altcoin, specifically an IEO token called Matic. The token became quite notorious several months back when it went through a major pump-and-dump. Comparing its chart to that of the S&P 500, there are several similarities to be seen. Since Matic crashed a while ago, its performance shows the future of the S&P 500, should the similarities continue. Another large US stock index, the Dow Jones Industrial Average, recently triggered a TD 9 buy signal on daily timeframes, and others seem to be ready to follow, including the S&P 500, as well as Apple. Numerous analysts believe that the sharp drop is going to cause and even sharper rebound, with a surprising strength once the period of panic passes by. However, this can only take place if the coronavirus outbreak gets better contained in days to come.