Although coronavirus is still viewed as unlikely to derail the bull market, it has noticeably sapped its strength. We don’t feel it so much when stocks are ratcheting blithely higher as they did last week. But when you see half of those gains erased in mere minutes as occurred this morning, it’s warning us to watch out for trouble. For the moment, that means focusing on the 3380.63 midpoint resistance shown in the chart. The 13-point rally required to get it there seems likely, and I’ll suggest using it as a minimum upside projection. But I will also be looking to get short there, if only for a quick scalp, since I mildly doubt that bears are nervous enough to deliver the usual short-covering panic on-demand. If they can sit back and just enjoy the news, including most recently Apple’s sobering, virus-wary guidance, perhaps then the supposed Smart Money will get the comeuppance it has been courting for years.
