![WHY The Stock Market Is Going To Crash Again [It's NOT Over Yet]](https://i.ytimg.com/vi/mrBTZoZkXrw/maxresdefault.jpg "WHY The Stock Market Is Going To Crash Again [It's NOT Over Yet]")
Why the stock market has another 30% to drop first before the next upwards bullish leg on the S&P 500 - here I share some technical analysis and thoughts on the current market situation. Stock market crash 2020 what to do?
In my opinion you should absolutely wait to invest until the current market correction pattern resolves itself and we have more of an idea on an end point with the current pandemic in play. In terms of probability it seems more likely the stock market will push down further possibly another 30% to around 1750 on the S and P 500;
stock market 2020 predictions
This was the largest stock market crash in history at around 35% likely due to the fact it came off stock market highs this time (compared to previous) along with the fact there is much more algorithm/computer trading and also due to the sudden almost considered black swan event of the pandemic. Hence the short bull rally of 20% was not that much of a surprise and could be a relief rally only.
stock market crash analysis
There is a low probability argument that we have already put in a stock market low and a few indicators on the shorter timeframes are pointing at this but it could be a classic bull trap and retail investors who have jumped in could be in for a tricky ride the next 2 to 3 months. For this argument we are assuming that all bad economic news is already priced in and as it stands we are currently trading 25% off the highs so it is for sure possible.
is the stock market going to crash more?
What is interesting about the 2009 to 2020 run (one of the longest in history to the up side) is the actual structure and whether there is still more to go taking us to perhaps a market top in 2023 or so but only time will tell after this current correction plays out - here the fib levels which follow nature's law and take into account the entire market psychology will be very important along with the likely Elliot Wave counts that are confirmed in due course.
should I invest now or wait 2020
Regardless there is still a good degree of volatility as shown on the VIX and this does not correlate well with emergence of a new impulsive wave upwards and new leg of an uptrend. Thus investors should consider staying on the sidelines while this pans out even if it means giving up some potential early gains.
Should I invest now?
The other major factors at this time are global indices and how they have performed over the last 2 years (i.e. not great at all!), the fact silver/gold are not really going up despite the stimulus packages and finally the crashing oil prices which are no doubt also having a negative impact on the overall markets.
Sell you all in the next one!
Sajad
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