: [
For my data viz. class at Dartmouth, I decided to look into Covid vs SPY500. We find that the worst of the worst in terms of the psychology came in the beginning stages of Covid. We notice that the Covid daily case count and the price of the SPY500 had an inverse relationship late February to late March. In the market we have this term “priced in”. We see this inflection point on March 23rd, this is the day the market bottomed. The reason is purely the fact that many managers and politicians had expressed that this was “the end of the world”. The SPY was showing oversold on the Relative Strength Indicator, aka RSI and everyone on TV was extremely bearish. I believe Wall Street priced in that this virus was going to be absolutely devastating and that the only solution would be a vaccine. In March the markets priced in the entire Covid cycle and smart money knew it was time to get long. Over the course of April to November, we notice that Covid daily cases and the adjusted close on the SPY500 have a positive relationship. We even see in our correlation matrix that our correlation between “New Covid Cases” and “Adjusted Close” have a moderately strong positive correlation. There are a lot of confounding variables such as vaccine news and the Fed's expansion of the balance sheet, and low interest rate environment.
],