RE: So much fear in the market now...
Dear @culgin
People and investors across the globe seem to be terrified. And they surely have a reason to feel that way.
the SPY is likely to see some support at the 288 level
I'm not sure if TA can be of any use in times of general panic or FOMO. Support levels are build partly on confidence and trust - and this is gone.
On top of that currently FED and other central banks are manipulating market to degree we've never seen before. And TA definetly cannot take this into consideration.
However, the market typically do not go vertically down for long.
They do not. Assuming that companies on stock market will still survive. And it seem that many of those corporations are nothing but "zombies" - on the edge of shutting down completely and going bankrupt.
Upvoted already,
Yours, Piotr
@crypto.piotr my friend, you sounded too pessimistic. TA is actually built on human psychology. Many psychology concepts come into play in a TA, recency bias, anchoring effect, self-fulfilling expectations and etc. So as long as humans are still humans (and not cyborgs), TA is still relevant.
The COVID-19 virus is serious and nobody can predict how it will end. However, do remember that its close cousin, SARS, disappeared suddenly after spreading to 32 territories and killed 8000 people. In addition, viruses' mortality rate has the tendency to get weaker over time. This is because viruses need a host to survive and transmit. If the host is killed too soon, the virus has lower chance of spreading. Hence, due to natural selection, viruses' mortality rate drops over time. Of course there will be exceptions but COVID-19 does not seem like an exception if we can trust the numbers from China.
Finally on Fed manipulation. Of course, we all know fundamentally the world is pretty screwed by modern day monetary policies and the fiat system. That is why you and I are invested in cryptocurrencies. Hopefully it is a way out for us.