Invaluable support broken as S&P 500 and Dow plummet, with a probable formation of Head and Shoulders observed in Nasdaq
The Stock Market is Starting to Look Shaky
The S&P 500, which is an index that tracks the performance of 500 large US companies, has recently dropped below some important levels of support. This includes the lowest point it reached in June, a moving average that shows the average price over the past 89 days, and a line on a chart that helps predict future price movements. This drop is a big deal because it breaks a pattern of the stock market going up and down in a certain way since the start of the year. Now, experts think the stock market could continue to fall and reach a new low point around 4195.
The Nasdaq 100, another index that focuses on technology companies, is also in a vulnerable position. It is currently testing a line on a chart that connects the highest points it reached in June. If it breaks below this line, it could trigger a pattern that suggests the stock market will continue to go down. Experts predict that if this happens, the stock market could drop to around 13200, which is close to another moving average that shows the average price over the past 200 days.
Dow Jones Industrial Average
The Dow Jones Industrial Average, which tracks the performance of 30 large US companies, has also been struggling. It recently fell below a line on a chart that used to act as a support, or a level where the stock market would stop falling and start going up again. Now, experts think the stock market could continue to fall and reach a new low point around 32600, possibly even lower.
Overall, the stock market is showing signs of weakness. This is concerning because it suggests that the stock market could continue to go down in the future. Experts are keeping a close eye on these developments and are worried that the stock market could experience a gradual decline, similar to what has been happening with the price of gold since May.