Stocks Shocked by Seriousness of Virus

As virtually all of our models have been warning, stocks are taking a big hit this morning. The tension has been building, simply waiting for a catalyst. With OPEX/Quad-Witching in the rear view, the UK virus mutation certainly fits the bill.

ES, off 128 points a few hours ago after coming within 6 points of our 3730 upside target, has rebounded sharply from its lows as algos cheer VIX’s pullback after testing its 200-DMA.

But this appears to be just the start of a very rocky road for markets which have previously ignored the worst disaster in any of our lifetimes. Can anyone really be shocked?

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