US stocks have struggled to hold on to positive levels today as the S&P 500 has given up an intraday gain of more than 1.5%. Looking at a longer-term chart of the S&P 500, we’re currently testing the uptrend that has been in place since the lows in December 2018. If that trendline fails to hold (~3,100), technicals would suggest that another round of selling is in store.
Outside of the US, Brazil announced its first case of the coronavirus today, and the country’s benchmark Ibovespa index is down over 5%. Like the S&P 500 in the US, today’s decline in Brazil is also resulting in a test of a trendline that has been in place since the summer of 2018. Unless the news flow on the coronavirus starts to improve, these trendlines will increasingly come under pressure. Join Bespoke Premium to access Bespoke’s most actionable stock market research and analysis. Start a two-week free trial now!