liberatedstocktrader

Catching a Falling Knife - Trying to Go Long on the SP-500

Short
SPCFD:SPX   S&P 500 Index
With our everyday lives being severely restricted, the new reality of a massive economic impact raises its ugly head.
The ferocity of the market collapse makes this different from all other market crashes we have seen before.

We have now entered target 3 and are about to wipe out 12 years of gains on the S&P500 .

Breaking down through the 2000 points support will see us enter the value zone.

But what is value to you?

You could re-enter the market under 2,000 points to watch your investments deteriorate by another 25% down to the year 2000 and 2007 stock market highs at 1,500 points.

This market shows NO SIGN of stabilizing as you can see from the long-term weekly chart. The daily chart is equally as horrific.

The new support level has not been found.

I expect a fall through into the value zone and potentially to 1,500, but it all depends on how quickly we emerge from the crisis.

Don't Try to Catch a falling knife.

Stay healthy

Barry

Comments

Words of wisdom, and experience
Your chart presentation of the S+P is the best I have seen on this site,
Very clear support levels, and what they mean ,when/if they get there
Keep up the excellent analysis.
Reply
@The_Unwind, Kind words from a master trader, thanks Joe
Reply
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