Mini bear (short term downtrend) and mini bull (short term uptrend) usually would take turn in uncertain markets until a major trend (longer term trend) is confirmed.
As of now, US short term stock market is losing short term momentum with S&P500 below intermediate support of 3000 points (was a critical resistance before that). The current global stock market correction of about 10% has reflected the initial fear of Coronavirus, similar to Asian stock market 5-8% correction during lunar new year in late Jan to reflect the initial fear of China Coronavirus condition.
Currently it is still fear driven stock market correction but when the real economy is affected with longer period of pandemic (over 6-12 months) with manufacturing supply chain broken, reduced spending globally (less tourists, less shoppers, less spending), then the big bear will not be too far as it would be fundamental driven (country economy will fall and many business which depends on consumers would be less profitable or even making losses), share prices would be bearish for over 6-12 months, worse if coupled with falling of stock market from high optimism.
Therefore, whenever stock prices up or down, evaluate if it is fear or fundamental driven. Coronavirus crisis so far on stock market is still fear driven but having potential to be fundamental driven when dragging too long.
New virus (stock market is at mercy of Coronavirus):
-> initial spreading, initial fear, stock fall 10%
-> more spreading (pandemic), more fear, stock fall 20%
-> quarterly economy falls, more fear, stock fall 30%
-> yearly economy falls, great fear, stock fall 50%
-> continue the downtrend circle of stock <—> economy until Low optimism at L3 to L4 (world level)
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