GFC, Corona, Fibonacci and S&P500 as of Now: this is the topic of our Blog Post this week. In this post, let us highlight the similarities between Market conditions during GFC and Corona virus pandemic. We will analyse the 2 situations (GFC and Corona) for the world’s biggest stock index S&P500. We will demonstrate these conditions through the use of the powerful Fibonacci Ratio (0.618 or 61.8% which is the inverse of the Golden Ratio 1.618 or 161.8%).
As we all know by now, during GFC (2007-2008), S&P500 corrected itself from the high of 1,575.75 to a low of 666.43. This was a correction of 57.71% or 909.32 points in 1 year and 4 months. During Corona virus pandemic, S&P500 has corrected (so far) from the high of 3,397.20 to a low of 2,184.31. This is a correction of 35.70% or 1,212.89 points from the top in only 1 month and 3 days.
Now the Similarities between Market conditions during GFC and Corona virus pandemic: On 26-Apr-2010 during recovery from GFC, S&P500 faced the resistance at 61.8% Fibonacci Level which was at 1,228.39 (refer left hand side of the chart). Exactly from that point and that day, S&P500 came down 16.75% or 203.25 points during next 2 months and 4 days. Now during Corona virus pandemic, S&P500 is facing the same resistance at same 61.8% Fibonacci Level which is currently at 2,933.88 price level. S&P500 has already interacted and is now, at the time of writing this blog post, interacting with this 61.8% Fibonacci Level at 2,933.88. From 29th April 2020 till date, during Corona virus pandemic, price of S&P500 has got rejected 2 times from the 61.8% Fibonacci level as below:
1. first on 30th April 2020 and then on
2. 11th May 2020.
Within last 5 days of during Corona virus pandemic i.e. from 18-May-2020 till 22-May-2020, S&P500 has closed once below the 61.8% Fibonacci level and 4 times above the 61.8% Fibonacci level.
Now the big question: is S&P500 going to repeat the same price action during the Corona virus pandemic as it did during GFC? Or this time S&P500 will follow some other way and do something different than that of GFC?
To know the possible answer to this critical question and to take advantage of our proprietary technical analysis so that you can move to the next level in your trading journey and be good at trading the stock market indices, click here.
Our Unique, Proprietary and most accurate Trader Foundation Course has the capability to identify these markets’ price objectives at a regular interval which we share with our Paid Clients.
To Trade Stock Markets Indices in the Professional way and to find out the answers to all your Trading related queries, please contact us at +61 3 9790 6476 and book your FREE discussion session for 30 minutes at Level 3, 2 Brandon Park Drive, Wheelers Hill, Victoria 3150.
Our Post dated May, 01 2020:
S&P 500 stock market index (SPX500, SPTRD, SP 500 or US500) is at Multiple Resistances. What to Expect Now? Let us throw some insights into the important question.
After a tremendous and rapid drop from the all time high of 3,397.20 to 2,184.31, S&P 500 stock market index (SPX500, SP 500) is now facing multiple resistances.
The drop from 3,397.20 to 2,184.31, S&P 500 stock market index (SPX500, SP 500 or US500) is a massive 1,212.89 points which is equal to 35.70% drop in value. This massive drop for S&P 500 stock market index (SPX500, SP 500 or US500) happened in only 22 daily bars from 20-Feb-2020 to 23-Mar-2020. After that S&P 500 stock market index (SPX500, SP 500) has rallied till the time of writing this post to 2,879.57.
Now at this level of 2,879.57 S&P 500 stock market index (SPX500, SP 500 or US500) is facing the following resistances as shown in the chart below:
1. 200 period daily exponential moving average
2. 61.8% Fibonacci level
3. Also we observe a Crack & Snap Back phenomenon at point 1 and 2 above.
Now if S&P 500 stock market index (SPX500, SP 500 or US500) is closing below 2,869.09 on a daily basis and its low is taken out then our price objectives are as below:
- 2,815.65
- 2,786.71
- 2,761.88
- 2,747.47
- 2,671.59
- 2,658.59
- 2,590.41
- 2,578.55
- 2,550.98
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To take advantage of our proprietary technical analysis and to move to the next level in your trading journey, and to be good at trading the stock market indices, click here.
Our Unique, Proprietary and most accurate Trader Foundation Course has the capability to identify these markets’ price objectives at a regular interval which we share with our Paid Clients.
To Trade Stock Markets Indices and Forex Pairs in the Professional way and to find out the answers to all your Trading related queries, please contact us at +61 3 9790 6476 and book your FREE discussion session for 30 minutes at Level 3, 2 Brandon Park Drive, Wheelers Hill, Victoria 3150.
Our Post dated March, 29 2020:
Crisis Presents Opportunity. This is the perfect time to convert the present crisis situation into Opportunity by Learning from your Home how to Trade Forex, Shares. You can do this by enrolling in our Online Crash Course Now.
Most of us are experiencing the world wide crisis as of now. Lock down is forcing people to either work from home or be at home till further notice.You can convert this crisis into an Opportunity by investing on yourself to learn a new skill, viz. Learning from your Home how to Trade Forex, Shares, Indices, Commodities.
As a special case we have developed the Online Crash Course to convert this crisis into an Opportunity.
We are offering Online Crash Courses on:
1. Forex
2. Shares
3. Commodities
4. Indices
Much before this crisis started to happen in world wide stock markets precisely from 24.02.2020, we were highlighting its possibility (weakness in world wide Stock Markets) through our various posts dated 23.02.2020; 27.01.2020; 25.11.2019.
We all know that Crisis Presents in disguise an Opportunity. At the time of writing this post, world wide Stock Markets, Indices Markets have already crashed 30-42%, and thereby producing Volatility which is considered to be a Friend of Traders. This crisis in the Market can be turned into our favour even if Market decides to continue to correct itself further or swings back to the upside for the time being to regain a portion of the huge loss reported earlier. No one knows what will happen in the future, but you can decide to invest in yourself to learn a new skill, viz. Learning from your Home Online how to Trade Forex, Shares, Indices, Commodities.
Our Online Crash Course will guide you through every step of your trading in all the asset classes viz. Shares, Forex, Commodities, Bond and Indices e.g. DAX, ASX200, Dow Jones etc to explore the possibility of earning second income. Develop yourself as a professional trader capable of capturing extra income in future with us.
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email: [email protected]
