S&P 500 Bearish Triangle May Lead To Additional 8% Decline
SPY Daily Chart.
The financial markets remain volatile as inflation, supply-chain issues and serious geopolitical events cloud the immediate future.
This volatility has manifested itself into a bearish descending triangle on the broad U.S. stock market .
Looking at the chart above for the SPDR® S&P 500 (NYSE:) we can see this triangle formation. Note the height of the last rally via the upper red arrows, as well as the major price support area at line (1).
Is the stock market selloff over?
Well, this support line may very well be our tell. If support at (1) fails to hold, a “measured move” suggests that the S&P 500 ETF could fall another 8% t to (2).
A move like this would further rattle the financial markets and perhaps your portfolio. Stay tuned.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Comments are closed, but trackbacks and pingbacks are open.