S&P 500-Are we back in 2001?

SP:SPX   S&P 500 Index
The S&P 500 measures the performance of 500 large publicly traded companies in the United States. The index is widely regarded as a benchmark for the overall performance of the US stock market and is used by investors and financial professionals to track the performance of the US economy.

The S&P 500 experienced significant volatility and decline in the year 2001. This was primarily due to the dot-com bubble burst and the September 11 attacks.

I find 2001-02 similar to 2022-23 and here is why;

In 2001 S&P plummet 38% till September and we witnessed a relief rally in October (23% up) and fake breakout of long trendline resistance on weekly timeframe . However index got rejected from Fibonacci level of 0.38 and plummet 35% more forming a bottom in the month of October-2002

Current bear market started from start of 2022 and S&P plummet 27% till September-2022 following a relief rally from October (20% up). It has also shown breakout from long trend line resistance and rejected from Fibonacci level 0.5.

My view is that current breakout is a fakeout like 2001-02 and S&P can plummet more about 20-24% till 3200 (0.618 Fib level of covid rally). Currently S&P is trading at 3921 level.

Disclaimer: Not a financial advice, economics 101: past performance does not guarantee future results. #DYOR.

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.