I know not everyone is familiar with my Echo Trades charts, but here’s what the SPY looks like right now with my Fibonacci levels set up on it:
To me, and based on these levels, it’s looking like we’ll at least go further down into next week (so starting tomorrow). That might even continue through the end of February.
The 4000-4100 area is the area to watch for a bottom/bounce if we go down hard and fast.
It doesn’t have to make a lower low here to reset the overlapping corrective price action we have seen since the big down day in January.
If we hit those levels, I’d expect a bounce up higher.
A lot of folks think that the bad mood of the market has fully triggered the next recession, but I don’t believe it yet.
I do think we’ll see a bigger, long-term market correction eventually, and it could be a pretty serious one.
But as far as inflation and rate hikes are concerned, most of that is already priced in.
At least, those are my two cents.
I thought it was a really thoughtful question from Monica and I wanted to share my answer with all of you.
Jeffry Turnmire and InvestPub do not provide investment advice. Trading involves a substantial risk of loss and is not suitable for all investors. Many traders fail and you should not trade with money you cannot afford to lose. If you need personal financial advice, consult a financial advisor.
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