Key Technical Indicator Suggests Potential 14% Market Drop If History Is Any Guide
The Bollinger Bands indicator has just delivered a bearish signal for the S&P 500 index, known for accurately predicting past market downturns. Developed by John Bollinger, this indicator helps traders identify oversold conditions and potential trend reversals.
The Bollinger Bands indicator signals a sell when prices reach the upper band (located two standard deviations away from the moving average) and a buy signal when touching the lower band.
Last Friday, June 2, the $SPY.US$ broke through the 4,250 level, exceeding its 50-day moving average by over two standard deviations.
History suggests the U.S. stock market is poised to drop from here. Based on the latest five observations, the S&P 500 bottoms out approximately 35 sessions after a Bollinger Bands sell signal is triggered.
Source: Benzinga
Disclaimer: Past performance does not guarantee future results. This is for information and illustrative purposes only. It should not be relied on as advice or recommendation.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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nguyen thi kim huong :
151894430 : Good
104153693 : withdrawal bos
Bullfroggin : By the dips sell the rips that’s how millionaires are made
70495499 : Great Technicals
calm Hamster_5689 : good article. will be watching closely. Coincidentally i've recently moved to a higher holding of cash
JonSnow : Today? It will drop 14 percent today?
VKFA : Good
clarrr : Past can not reflect future
OriginaLew clarrr : those who forget &/or ignore the past are doomed to repeat it
Sell The Truth OriginaLew : Right
RDK79 : No summer rally I guess. Will see about mid July if BB was correct.
practical Hamster_53 : But previous was like a downward bear market, is it still holding if the market changed to bull?
71504463 : History always repeats itself
Terminal 89 : Us stocks rebounded.
KK _6000 : History has repeated itself very evidently in last 500 years.