Ralph Acampora, the godfather of technical analysis, expects 10% stock market drop until shares start growing again
According to Acampora, the current market nervousness around coronavirus epidemic may easily trigger into global stock market sales. “The market itself was stretched, so we were begging for some kind of correction and coronavirus epidemic may be the catalyst,” he said to Marketwatch.com.
He expects up to 10% stock market drop and that is, according to him, drop expected among majority of analysts relying on technical analysis. The mentioned correction may have started already on Friday, when Dow Jones Industrial Average (DJIA) dropped in more than 2%, other indexes experienced drop from 1,5 to 2%.
Furthermore, analysts await progress on main stock exchanges in China, which remained closed after Chinese New Year celebrations, and will re-open on 3rd February. However, the situation on other world’s exchange markets signalize that we may expect similar decline in Shanghai and Shenzhen.