The S&P 500 index has seen a decline of over 20% now officially stating a Bear-Market over the widely followed indices.
Today we are diving specifically in to the Monthly Chart for some Technicals Breakdown on the S&P 500 ETF (SPY)
The Monthly Momentum in this case we're using TTM_Squeeze (similar to MACD etc.) is signaling a flip to bearish momentum on the Monthly Time Frame. This is signifying possibly a big move down in the coming months, to continue the trend of the Bearish Momentum.
Last time we saw a real momentum switch with the TTM_SQUEEZE on the MONTHLY Chart was back in the 2008 Financial Crisis. Both scenarios are different in fundamentals, but even Technicals... SO I will not dive in to comparing the two much, as we were not as overbought then as we are now, and we have sold off already more now compared to when the monthly momentum switched then.
Nonetheless, this is not a good sign in the mid-long term of the Stock Market.
Technicals are showing months of decline, though this could include some dead-cat bounces, and bear-market relief rallies, we are starting to see a shift down in the markets.
Bond Yields Rising, Dollar Soaring, Interest Rates Rising, Home Prices Dropping, and Inflation still on the move... Currently there is not much to look forward to on this current Economy until it sorts out of course.
The bottom may be sooner than many think, or later. This idea was just to put this monthly timeframe in mind for your investing.
Thesis : Market may suffer for few more months to come, but nothing is sure and fundamentals could switch sharply & swiftly with lower CPI numbers, and a more Dovish Fed. This may take a while, or not... Averaging in on investments in a Bear Market is never a bad idea in my opinion.
Today we are diving specifically in to the Monthly Chart for some Technicals Breakdown on the S&P 500 ETF (SPY)
The Monthly Momentum in this case we're using TTM_Squeeze (similar to MACD etc.) is signaling a flip to bearish momentum on the Monthly Time Frame. This is signifying possibly a big move down in the coming months, to continue the trend of the Bearish Momentum.
Last time we saw a real momentum switch with the TTM_SQUEEZE on the MONTHLY Chart was back in the 2008 Financial Crisis. Both scenarios are different in fundamentals, but even Technicals... SO I will not dive in to comparing the two much, as we were not as overbought then as we are now, and we have sold off already more now compared to when the monthly momentum switched then.
Nonetheless, this is not a good sign in the mid-long term of the Stock Market.
Technicals are showing months of decline, though this could include some dead-cat bounces, and bear-market relief rallies, we are starting to see a shift down in the markets.
Bond Yields Rising, Dollar Soaring, Interest Rates Rising, Home Prices Dropping, and Inflation still on the move... Currently there is not much to look forward to on this current Economy until it sorts out of course.
The bottom may be sooner than many think, or later. This idea was just to put this monthly timeframe in mind for your investing.
Thesis : Market may suffer for few more months to come, but nothing is sure and fundamentals could switch sharply & swiftly with lower CPI numbers, and a more Dovish Fed. This may take a while, or not... Averaging in on investments in a Bear Market is never a bad idea in my opinion.