US stocks have struggled to hold on to positive levels today as the S&P 500 has given up an intraday gain of more than 1.5%. Looking at a longer-term chart of the S&P 500, we’re currently testing the uptrend that has been in place since the lows in December 2018. If that trendline fails to hold (~3,100), technicals would suggest that another round of selling is in store.

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Outside of the US, Brazil announced its first case of the coronavirus today, and the country’s benchmark Ibovespa index is down over 5%. Like the S&P 500 in the US, today’s decline in Brazil is also resulting in a test of a trendline that has been in place since the summer of 2018. Unless the news flow on the coronavirus starts to improve, these trendlines will increasingly come under pressure.  

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