Running out of steam SPX500

23 Tem 2020

As you can see from prior experience we have an ascending RSI trend line of high lows until we reach a capitulation point. In both examples we also had a short run up prior to a significant drop. If you back test this over the last couple years you get a correction of anywhere from 3-35%

With any substantial drop, fear could be brought back into the market and the downturn could become more severe.