Catching a Falling Knife - Trying to Go Long on the SP-500

21 Mar 2020

With our everyday lives being severely restricted, the new reality of a massive economic impact raises its ugly head.
The ferocity of the market collapse makes this different from all other market crashes we have seen before.

We have now entered target 3 and are about to wipe out 12 years of gains on the S&P500.

Breaking down through the 2000 points support will see us enter the value zone.

But what is value to you?

You could re-enter the market under 2,000 points to watch your investments deteriorate by another 25% down to the year 2000 and 2007 stock market highs at 1,500 points.

This market shows NO SIGN of stabilizing as you can see from the long-term weekly chart. The daily chart is equally as horrific.

The new support level has not been found.

I expect a fall through into the value zone and potentially to 1,500, but it all depends on how quickly we emerge from the crisis.

Don't Try to Catch a falling knife.

Stay healthy

Barry