Its another 10% down to test the Pre-COVID market high
Long term trend (weekly view) shows 2 previous market "resets" result in an approx. 50% drop in the S&P500 . Tech bubble popping in 2000 and Financial Crisis in 2008.
So far, this latest downturn is 20% off its high. Its another 10% down from here to retest the high in Feb 2020 just before COVID-19 hit the US.
That would bring the S&P500 back into the longer-term trended that started after the financial crisis.
I'm bullish near-term (next few weeks) as a bounce is likely and we're at some nice round number support/resistance levels that traders will play with (3900 - 4200).
However, the downtrend is likely to resume if the next few quarterly results seasons show a slowing of the economy and Fed keeps raising rates adding downward pressure to those results.
So far, this latest downturn is 20% off its high. Its another 10% down from here to retest the high in Feb 2020 just before COVID-19 hit the US.
That would bring the S&P500 back into the longer-term trended that started after the financial crisis.
I'm bullish near-term (next few weeks) as a bounce is likely and we're at some nice round number support/resistance levels that traders will play with (3900 - 4200).
However, the downtrend is likely to resume if the next few quarterly results seasons show a slowing of the economy and Fed keeps raising rates adding downward pressure to those results.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.