Global stocks flashed bright red on Monday as coronavirus cases spike outside of China, raising concerns about the prospects of a pandemic.

Asian and European stocks crumbled while the Dow Jones plunged over 900 points amid the risk aversion. Investors have clearly entered the trading week with a mission to avoid riskier assets with safe-haven instruments like the Dollar, Japanese Yen and Gold poised to shine through the market chaos.

Dow Jones plunges over 3%…

US equity bears shifted into a higher gear today with the Dow Jones collapsing like a house of cards as coronavirus cases grew.

The technical picture is shifting in favour of bears on the daily charts with prices trading around 28190 as of writing. A solid daily close below 28000 could signal further downside with 27700 acting as the new key level of interest. Should 28000 prove to be a reliable support, the Dow Jones could attempt to close the gap by rebounding towards 28350 and 28900, respectively.

S&P 500 wobbles above 3230

The S&P 500 has entered the week on the wrong side of the bed.

Prices have gapped down on risk aversion and could extend losses in the week ahead. A breakdown below 3230 could signal a drop towards 3200. If 3230 proves to be a strong support, the S&P 500 could rebound back towards 3300 and 3340, respectively.

Gold aims for the stars and beyond

Gold aimed for the stars today, jumping over 2% to hit a fresh 7 year high above $1685 as investors sprinted towards hot-spots of safety.

The precious metal is heavily bullish on the daily charts as there have been consistently higher highs and higher lows. A solid daily close above $1660 should seal the deal for a move towards the psychological $1700 level. If Gold bulls run of steam and prices end up sinking back below $1660, the next level of interest will be around $1620.

Currency spotlight – GBPUSD

The Pound seems to be experiencing a period of calm ahead of the storm known as Brexit. With post-Brexit talks officially kicking off in early March, the GBPUSD could turn volatile. In regards to the technical picture, prices are trending lower on the daily charts. A breakdown below 1.2830 could inspire a move towards 1.2750 and 1.2650.

Altenratively, a breakout above 1.3000 should signal a rebound towards 1.3070 and 1.3150.

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