Omicron Weighs on Global Stocks

2 dic 2021

We cautioned readers yesterday to exercise caution with stocks and this advice was warranted, as stocks have dipped further into negative territory. Global stocks have pushed lower with news of the first case of the Omicron strain of the Coronavirus was confirmed in the United States. We have broken through what appeared to be strong support at 4580, then 4564, taking out several levels below, and finally finding support at 4504, confirmed by a green triangle on the KRI. All of these levels we have discussed in the past, and we gave comments to yesterday's report keeping readers updated. The Kovach OBV is quite bearish, but we are currently seeing another meager attempt at a rally, which is currently facing resistance confirmed by a red triangle on the KRI at 4545, another one of our levels. From here it depends on how the markets will interpret this news further. A rally will have to break 4580 and cross the vacuum zone above for stocks to attempt a recovery. Further fallout could break 4504 and test the 4400's, with 4487 and 4462 being the next targets. We still advise caution in buying this dip as the fallout may persist, or we may see at least some volatility as markets jostle for footing.