Now, there’s finally a strong reason that could explain the deep selloff in the stock market that started late last week. AstraZeneca Plc said it has paused a late-stage trial of one of the coronavirus vaccine candidate, due to an “unexplained illness in one of the trials. The company said that’s “routine action” while the illness is investigated, “ensuring we maintain the integrity of the trials”. Also, “in large trials, illnesses will happen by chance but must be independently reviewed to check this carefully.”
All major US indices ended sharply lower, with DOW down -2.25%, S&P 500 down -2.8%, NASDAQ down -4.11%. NASDAQ is still holding on to key near term fibonacci level for now, 23.6% retracement of 6631.42 to 12074.06 at 10789.59, which is close to 55 day EMA. As long as this support holds, price actions from 12074.06 will likely develop into a brief near term consolidation only, and the record run will resume sooner rather than later. Though, firm break will suggest that deeper correction is underway to 38.2% retracement at 9994.97, at least.
