In less than two weeks, we will know if Joe Biden succeeds in overthrowing current President Donald Trump. Normally, the stock markets perform disappointingly towards the elections. For the time being, however, the stock markets have managed to hold up reasonably well.
Investors should fear another stock market crash...
According to technical analyst Yuriy Matso, the S&P 500 index currently shows a strong connection with an earlier stock market period. The graph above shows the leading US stock exchange is currently facing the so-called "megaphone pattern".
The S&P 500 index could still rise this year towards the 4,000 point limit. The leading stock market must then set a solid top around that course. The year 2021 could be a "crash year" in that scenario. According to Matso, the S&P 500 index may fall year-on-year towards the 2,000 point limit. And few analysts see that coming at the moment.
Do you also fear a new stock crash?