Stocks fell sharply on Friday, wiping out the Dow Jones Industrial Average’s gain for January, as investors grew increasingly worried about the potential economic impact of China’s fast-spreading coronavirus.

The Dow dropped 603.41 points, or 2.09%, to 28,256.03 in the 30-stock average’s worst day since August. The S&P 500 had its worst day since October, falling 1.77% to 3,225.52. The Nasdaq Composite dropped 1.59% to 9,150.94.

On Friday, the U.S. declared the coronavirus a public health emergency within the country. Delta, American and United suspended all flights between China and the U.S.

The virus, which was first discovered in the Chinese city of Wuhan, has now spread to at least 18 other countries and has dampened sentiment over global economic growth. China’s National Health Commission confirmed on Friday that there have been 9,692 confirmed cases of the coronavirus, with 213 deaths.

Plan A : Long if market supported firm above 3240.25. Targets are 3255.50, 3264.25 and 3276.50.

Plan B : Short if market failed to support above 3240.25. Targets are 3225.25, 3213.50 and 3203.25.

 

Friday’s losses erased all the earlier gains in January for the S&P 500, with the index down about 0.2% on the month. The Dow Jones Industrial Average has turned also red for January, down 1%. Perhaps the indicator now is signaling a volatile year we may have ahead.

Investors were caught off guard in the middle of January when the coronavirus spread from China to the U.S., causing a broad sell-off in risk assets. Now, the number of confirmed coronavirus cases has risen to 9,782 in mainland China, bringing the global total to almost 10,000 cases with at least 213 deaths. Major U.S. airlines also announced plans to suspend their already reduced service to China.

 

Plan A : Short if market failed to support above 9060.50. Targets are 9022.25, 8991.50 and 8965.25.

Plan B : Long if market supported firm above 9060.50. Targets are 9090.25, 9112.25 and 9129.50.

 

 

 

 

Hong Kong stocks erased morning session gains and ended lower on Friday, dragged down by healthcare and energy. However, bargain-hunting emerged in consumer stocks which were battered by a recent selloff amid fears of the coronavirus outbreak in China.

 

The Hang Seng Index closed down 0.5% at 26,312.63 points, the lowest since Dec. 5, ending the three-session trading week 5.9% lower.

Plan A : Above 26468, do nothing.
Plan B : Below 25803, do nothing.
Plan C : Continue to hold short as long as market does not breach 26468.
Plan D : Cut above 28545.
Plan E : Attempt to long if market tested and rebounds from 25803.
Plan F : Cut below 25725.