Nearing Capitulation, SPX Breaking Down
Hi all,
First off, new chart look! Do you like it? No? Hurts your eyes?
Well, I like it. But bare with me for a moment. This one is important...
The S&P 500 index has fallen below the yellow channel set up in my last post.
I'd expected us to rally a little higher, such as seen in 2008. However, a very bad omen occurred. We'd closed below that yellow channel, and weren't able to bounce back.
In my previous post, I'd explained that a breakout of such would send us spiraling down. Now that our fate is sealed below this channel, when can we expect this?
Well, I'd noticed that we've entered another, more drastic channel that I've outlined in cyan. The light blue one.
I'm confident that we'll soon bounce off of the top of this channel and plummet to around ~3750.
Then, we may have one final bounce off of the blue channel bottom, a minor sideways market trying to break back up, and then...
*ahem*
Total Capitulation
Or something of that sort, possibly entering an even narrower downward channel.
I can't say much for how far we'll drop or how quickly, but I expect a very quick drop to ~2955 followed by a slow bleed retest of the covid panic lows somewhere around ~2275.
That is the best case scenario.
In a worst case scenario, we may see something more drastic.
A retracement akin to the Great Depression's crash would land us around a mere 625.
Yes, that's an 87% drop from our all-time-highs. This happened from 1929 to 1933.
So my most important question to you, dear reader, is--
What do you think of the chart colors? Is it ok? Let me know your thoughts below. :)
First off, new chart look! Do you like it? No? Hurts your eyes?
Well, I like it. But bare with me for a moment. This one is important...
The S&P 500 index has fallen below the yellow channel set up in my last post.
I'd expected us to rally a little higher, such as seen in 2008. However, a very bad omen occurred. We'd closed below that yellow channel, and weren't able to bounce back.
In my previous post, I'd explained that a breakout of such would send us spiraling down. Now that our fate is sealed below this channel, when can we expect this?
Well, I'd noticed that we've entered another, more drastic channel that I've outlined in cyan. The light blue one.
I'm confident that we'll soon bounce off of the top of this channel and plummet to around ~3750.
Then, we may have one final bounce off of the blue channel bottom, a minor sideways market trying to break back up, and then...
*ahem*
Total Capitulation
Or something of that sort, possibly entering an even narrower downward channel.
I can't say much for how far we'll drop or how quickly, but I expect a very quick drop to ~2955 followed by a slow bleed retest of the covid panic lows somewhere around ~2275.
That is the best case scenario.
In a worst case scenario, we may see something more drastic.
A retracement akin to the Great Depression's crash would land us around a mere 625.
Yes, that's an 87% drop from our all-time-highs. This happened from 1929 to 1933.
So my most important question to you, dear reader, is--
What do you think of the chart colors? Is it ok? Let me know your thoughts below. :)
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