The S&P 500 was on track to close in negative territory on the year during Friday’s session. Each of the three major indices was off more than 1% as rising coronavirus fears triggered a sell-off in risk assets.
The S&P 500 would be negative for the year-to-date if it closes below 3,230.78. According to veteran market watcher Tom Lee:
…this does not feel like a reflexive 2%-3% drawdown that ‘needs to be bought’ but rather, this feels like the start of a broader correction. Hence, the character of the market is changing from the relentless buying since October, to one where we need to ‘wait for the initial bottom’ before becoming more aggressive.
Support for the S&P is seen near the 50-day moving average at 3211.