The SPX opened down 70 points. Why? In all honesty, I have no idea. There were more reports about infections of the coronavirus, and the death toll in America is at 11 now.
It is a very sad thing for the families of those who perished, but keeping things in perspective, we have more gang shootings in Chicago in a weekend.
Every day, well over 300,000 people drive drunk, and over 10,000 die from drunk driving fatalities. Up to 60,000 people a year in America die from the flu.
After the open, the market bounced a little on rumors that Elizabeth Warren was dropping out of the presidential race, leaving the field down to Joe Biden and Bernie Sanders. People speculated that she would throw her support towards Biden, but she remained uncommitted.
One can probably speculate accurately that she will offer her support to whichever candidate promises her the most.
With Warren not throwing her support behind Biden, and the media trickling out endless updates on the coronavirus, the market got heavy. The media was also careful to keep pointing out the economic effects of the panic they create with the reduction of travel and lodging.
Eventually the market has to succumb to a deluge, but bad news and the SPX slugged to give back almost all of yesterday's gains.
Right before the close, the SPX tested support at 3,000 before bouncing to close at 3023.94.
SPX closed down 3.39%.
Dow closed down 3.58%.
AAPL closed down 9.82 at 292.92 (-3.24%).
Dow Transports entered BEAR MARKET (down 20% or more) territory.