By Graham Summers, MBA | Chief Market Strategist
The S&P 500 is getting into some serious trouble now.
Bounces are short-lived, lasting at most a day… bulls are refusing to commit… and the breakdown is now reaching serious levels from a technical analysis perspective.
To wit, the S&P 500 is now 2% below its 10-week simple moving average (this is the same as the 50-day simple moving average). During the last four years, the only time stocks have broken down more relative to this line was during the bear market of 2022 or at THE 2023 lows.
Put another way, stocks are at a critical point in this sell-off. Either stocks hold here and begin a significant bounce or the market dynamic has changed dramatically to the point of looking more like a bear market as opposed to a garden variety correction.
See for yourself.
Indeed another way of looking at price action is to note that the S&P 500 is now on the verge of breaking below its bull run trend line from the 2023 lows. This has happened once before during the August 2024 meltdown, but stocks need to catch a bid right here and now if things aren’t going to get REALLY messy.
Seeing this, many investors are asking themselves “are stocks about to Crash?!?”
To figure that out, I rely on certain key signals that flash before every market crash.
I detail them, along with what they’re currently saying about the market today in a Special Investment Report How to Predict a Crash.
To pick up a free copy, swing by:
www.phoenixcapitalresearch.com/predictcrash-leadgen
Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
