Psychology flipping from Coronavirus-focused to Economy-focused
Looking for another leg down in equities: looking for retest of the 2020 March lows at the VERY least.
So far into the crisis, the NASDAQ has substantially outperformed the S&P which (no surprise with the news and market psychology being Coronavirus-focused: far less bearish for tech). Markets are largely driven by psychology, and, investor/trader psychology has started a major process of evolving from Coronavirus-focused to economy-focused: this flipping is bearish for both equities broadly (dire economic outlook not yet priced in), and is particularly bearish for the NASDAQ which is somewhat immune to a work from home economy but is not immune to a recession or depression economy.
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