Last week, a sort of flash crash has killed the up trend of the SP500 , Nasdaq…
Many reasons… rates of course… debts… of course…
In fact… economy is not strong as we can believe.
I m not Nostradamus, thus I can not predict the next crash of the economy.
But I wonder if we are not at the beginning of a big big crash.
If we look the sp500 chart, we can notice two big supports (in RED).
If price break these supports, I think that it was the beginning of the end ! This scenario can happen after a “DEAD CAT BOUNCE” pattern for instance (poor cat snif !).
Obviously, price can resume the UP trend.
In the next days, I think that price can range between the two blue lines in the graph before going Up or Down, or as I said adopt a “DEAD CAT BOUNCE” pattern before going down.
Wait and see...