S&P in danger??
Updated
Hello fellow traders,
I hope everyone had a good week of trading. I was just messing around with some charts when I stumbled upon this. Is the S&P 500 in danger of experiencing the biggest drop in the modern age?
We've all heard analysts say that earnings are good and companies look strong, however, we've also heard some of them say we are coming to the end of the cycle.
The following chart is the monthly view of the S&P 500 across roughly the past 25 years. We see the big dip during 2008 but is there a dip waiting that'll dwarf the one of the past financial crisis?
I saw what seems to be a gigantic rising wedge that has stretches from the bottom of the financial crisis and seems to be approaching the peak. Perhaps we've already seen the peak? The February crash of 2018 could've been the signal of things to come? Even though we've made a new high afterwards, we still find ourselves in this pattern...
Could we see the S&P 500 go lower towards the bottom of the financial crisis should it break out to the downside? Food for thought...
What is your take on this chart and how would you trade it?
Cheers :)
I hope everyone had a good week of trading. I was just messing around with some charts when I stumbled upon this. Is the S&P 500 in danger of experiencing the biggest drop in the modern age?
We've all heard analysts say that earnings are good and companies look strong, however, we've also heard some of them say we are coming to the end of the cycle.
The following chart is the monthly view of the S&P 500 across roughly the past 25 years. We see the big dip during 2008 but is there a dip waiting that'll dwarf the one of the past financial crisis?
I saw what seems to be a gigantic rising wedge that has stretches from the bottom of the financial crisis and seems to be approaching the peak. Perhaps we've already seen the peak? The February crash of 2018 could've been the signal of things to come? Even though we've made a new high afterwards, we still find ourselves in this pattern...
Could we see the S&P 500 go lower towards the bottom of the financial crisis should it break out to the downside? Food for thought...
What is your take on this chart and how would you trade it?
Cheers :)
Note
Just an update on my previous post. Was the FED's rate hike all that was needed to push the S&P 500 over the edge and send it tumbling down?
IF so, will we see the price head down towards mid 700's as with the lows of the financial crisis over the longer-term now that it seems to have broken down from the rising wedge?
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