SPY Bear Target: $214
COVID-19, oil price wars, fractured supply chains, travel bans = unprecedented financial and societal disruption and we just ended an 11-year bull market, the longest bull market ever.
Are we at the cusp of the next economic collapse?
Technical Analysis:
• During every significant bear market, price action moved well below the Ichimoku cloud and exceeded the Fibonacci 50 level
• Our major pivot points based on Fibonacci are 23, 38, and 61, with values of $254, $214, $149 respectively
• Fibonacci 23 just hit March 12th ($254). This is only target 1, we are only at the tip of the iceberg.
• Expect high volatility and irrational price action (big gains & BIGGER losses) over the next few weeks before the market takes a DEEP dive towards the next retracement levels
• MACD has crossed the signal line and histogram shows outflux of money with strong selling pressure forming
• RSI is bearish and trending below 50
Conclusion: SPY to retest Fib 38 @ $214 and then Fib 50 @ $181
**Bonus** According to Goldman Sachs, "the combination of thin liquidity, high uncertainty, and positioning could cause the S&P 500 to fall below our $245 base case estimate of fair value and closer to a trough of $200"
Never trade against the prevailing trend of the market. And right now, the market has Goliath bear signals for a substantially lower bottom than a Fib 23 retracement.
Are we at the cusp of the next economic collapse?
Technical Analysis:
• During every significant bear market, price action moved well below the Ichimoku cloud and exceeded the Fibonacci 50 level
• Our major pivot points based on Fibonacci are 23, 38, and 61, with values of $254, $214, $149 respectively
• Fibonacci 23 just hit March 12th ($254). This is only target 1, we are only at the tip of the iceberg.
• Expect high volatility and irrational price action (big gains & BIGGER losses) over the next few weeks before the market takes a DEEP dive towards the next retracement levels
• MACD has crossed the signal line and histogram shows outflux of money with strong selling pressure forming
• RSI is bearish and trending below 50
Conclusion: SPY to retest Fib 38 @ $214 and then Fib 50 @ $181
**Bonus** According to Goldman Sachs, "the combination of thin liquidity, high uncertainty, and positioning could cause the S&P 500 to fall below our $245 base case estimate of fair value and closer to a trough of $200"
Never trade against the prevailing trend of the market. And right now, the market has Goliath bear signals for a substantially lower bottom than a Fib 23 retracement.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.