S&P500 - Analysing the Previous Crashes
I looked at the three previous crashes that we have had on the S&P500. The charts show the following:
1. All resulted in a weekly candle(s) going lower than all three moving averages (50, 100 and 200 weeks);
2. We have now gone below the first of the moving averages (50);
3. After such a crash, once a candle clears the first Moving Average (whichever one it may be), there tends to be a bull uptrend / bull run.
No one can say for certain the direction of the market, however at the moment of writing the stock market is widely acknowledged as being over-priced, hence we could be at the start of the bear run, particularly as we have now dipped below the 50 moving week average.
These are are my initial observations. I stand to be correct in the event that I have missed anything.
1. All resulted in a weekly candle(s) going lower than all three moving averages (50, 100 and 200 weeks);
2. We have now gone below the first of the moving averages (50);
3. After such a crash, once a candle clears the first Moving Average (whichever one it may be), there tends to be a bull uptrend / bull run.
No one can say for certain the direction of the market, however at the moment of writing the stock market is widely acknowledged as being over-priced, hence we could be at the start of the bear run, particularly as we have now dipped below the 50 moving week average.
These are are my initial observations. I stand to be correct in the event that I have missed anything.
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