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 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.