Bear Market territory
It is officially a bear market - this is defined by a 20% or more move downwards on the major indices. However what is not clear is whether this is also a major trend change
2020 Recession
Will there be a recession? Despite the market moves there is no confirmed recession. There are varying definitions but usually 2 quarters of negative growth confirm a recession. Based on the current world impact, likely much higher unemployment and issues with manufacturing there is a high likelihood we will see a recession later into 2020 (the extra time is required to confirm this)
When to invest in the stock market 2020
Given this is a major corrective structure I feel it will be weeks to months before we have a clearer idea on when the pattern has completed. Correction areas tend to be very volatile and difficult to trade so for longer term investors it is an idea to sit this out until especially as the fundamental economic impacts are also unclear
Technical Analysis of Snp 500
the analysis shows we may have been correcting every since october 2018 and other world indices confirm this. Hence later this year we may have the whole pattern play out and hopefully some bullish longterm buy signals. At that point would be prudent to invest just like the lows of 2009 following several years of overall sideways movement and correction in the S&P 500 SPY SPX market
Stock Market Bottom Yet 2020?
daily analysis shows we are correcting upwards into very important and significant levels, how price action develops here will be key in determining where we are going
See you all in the next one!
Sajad
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#stockmarketbottom
#2020recession
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