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Stock Market Crash Warning

By:
AG Thorson
Published: Feb 18, 2021, 15:44 GMT+00:00

The stock market is tracing out an almost identical pattern to the pre-Covid Crash of 2020. I doubt we will see another 35% decline, but a sharp and sudden plunge is possible. 

spy sp500

In this article:

I’m shocked concerning the similarities between now and 12-months ago in the stock market. In the chart below you will see how prices are following a near perfect repeat preceding the 2020 plunge. If the correlation continues, we could see a sharp selling event in late February.

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S&P 500 ETF (SPY) CLOSEUP: I’ll be monitoring stocks closely for signs of a potential top. Below are the three steps to confirm.

Step 1) Form a swing high (finish below previous session low).

Step 2) Closing below the 10-day EMA.

Step 3) A finish below the 385 level (S&P500 = 3850).

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A confirmed breakdown and collapse in late February could extend the decline into March. I am looking to go long energy aggressively on any pullback.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit here.

About the Author

AG Thorsoncontributor

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle that will begin to unravel in 2020.

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