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S&P 500 Bear Market Technical Analysis For March 12
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The US stock markets are testing critical support with today's 5% drop after NBA postpones season, and Trump halts inbound flights from overseas which will start Friday at midnight.
The US stock markets are testing critical support with today’s 5% drop after NBA postpones season, and Trump halts inbound flights from overseas which will start Friday at midnight. The S&P 500 is now testing 100% Fib Extension target and is also a clear support level all the way back to 2017. The daily and weekly charts, when compared to the 2001 and 2008 bull market tops, are a clear warning sign we much follow closely.
S&P 500 Video Analysis 12.03.20
The selling continues today with the stock indexes down 5% again today. The NBA announced suspending the season and Trump stopping flights from overseas starting Friday at midnight. The volatility continues and traders are scrambling for safety which no one can really find at the moment, and that’s because cash is king during widespread fear and market collapses.
Being short stocks would have been great but as I explained last week, just because we had a huge drop in the markets does not mean a trade should have been caught and could be traded with reasonable risk levels. We expected a pullback in stocks and we got long bonds, we nailed that trade but the market collapse was/is unexpected.
We continue to see huge price swings and this is very much a professionals market now and I say that for two reasons.
1. You better be a really good short term day trader
2. The other professionals being advisors, fund managers etc… are forced to liquidate positions and rebalance and this adds to the already big price action in asset classes.
More technical analysis at https://www.TheTechnicalTraders.com
About the Author
Chris Vermeulencontributor
Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and author of the book: 7 Steps to Win With Logic
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