S&P 500’s decline makes it chart look like that of illiquid altcoins

Fibo Quantum

The stock market has seen a major crash
following the coronavirus outbreak, causing many to believe that the virus
might be responsible. As the virus continues to spread around the world, the
fear of its potential impact is believed to be the main cause of a stock market
decline, with one of the sharpest ones in history being that of the S&P
500.

In fact, many have taken to comparing its crash to that of illiquid altcoins in the crypto industry.

As mentioned, the virus is continuing to
spread, and the death toll is rising higher and higher. The development has
caused quite a bit of panic, which is already disrupting the global economy.
Manufacturing facilities are shutting down, traveling to the parts of the world
considered to be hotspots for infection are severely limited, and the health
officials are struggling to contain the outbreak.

Why is the similarity between the
charts concerning?

The financial markets seem to be suffering the consequences as well, with some of the largest companies seeing a drop of nearly 300 points in the US in the past month. The drop has been the sharpest over the past week, causing the stock index to look like a price chart of an illiquid altcoin, specifically an IEO token called Matic.

The token became quite notorious several months back when it went through a major pump-and-dump. Comparing its chart to that of the S&P 500, there are several similarities to be seen. Since Matic crashed a while ago, its performance shows the future of the S&P 500, should the similarities continue.

Another large US stock index, the Dow Jones
Industrial Average, recently triggered a TD 9 buy signal on daily timeframes,
and others seem to be ready to follow, including the S&P 500, as well as
Apple.

Numerous analysts believe that the sharp drop
is going to cause and even sharper rebound, with a surprising strength once the
period of panic passes by. However, this can only take place if the coronavirus
outbreak gets better contained in days to come.