Since entire world is busy predicting doomsday, here's my shot at it. The index is down almost a 1000 points from ATH. If this bear market is anything like we have seen in the past 150 years then there is one question that would come to your mind, where is the (potential) bottom? The answer to that question is, nobody knows, but we can make a calculated guess by analysing history.
This is a 3 month candlestick chart where 4 candles represent a year. The blue line on the chart is 50 EMA and the red line is 100 EMA. in every major bear market of last 150 years, market has made a bottom around these levels give or take another 10-20% fall. Only one exception is The Great Depression where SPX fell another 60% from the red line.
As of this post blue line is 2673 and red line is 2007 which is another 1000-1650 points fall from here. Those are the levels where I would be comfortable catching the falling knife as a value buy.
Will it fall another 1000+ points? Idk. It's all speculation so take it with a grain of salt.
This is a 3 month candlestick chart where 4 candles represent a year. The blue line on the chart is 50 EMA and the red line is 100 EMA. in every major bear market of last 150 years, market has made a bottom around these levels give or take another 10-20% fall. Only one exception is The Great Depression where SPX fell another 60% from the red line.
As of this post blue line is 2673 and red line is 2007 which is another 1000-1650 points fall from here. Those are the levels where I would be comfortable catching the falling knife as a value buy.
Will it fall another 1000+ points? Idk. It's all speculation so take it with a grain of salt.