S&P 500 Bearish Triangle May Lead To Additional 8% Decline
Chris Kimble | Mar 07, 2022 04:16PM ET
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 S&P 500 Index.
Looking at the chart above for the SPDR® S&P 500 (NYSE:SPY) 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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.