Friday’s coronavirus induced selloff erased all of the S&P 500 gains for the year while the S&P 500 e-minis (ESH20) bounced off its 50-day moving average, setting up the inside day that unfolded Monday. Price action became a tale of two halves. The ESH20 shot up nearly 30 points from the open to top out at 3257.25 before capitulating and giving back 25 points over the course of the morning. During the afternoon, the ES settled into a 10-point range, waiting for something to give it some direction.
The coronavirus continues to spread, offsetting strong first-quarter corporate earnings. Meanwhile, the political circus of the Trump “non-trial and highly partisan” impeachment could be coming to a close as early as tomorrow. Volatility should remain high for today.