SPX The Anatomy of a Recession - Study #2So here is a second study. The one I posted earlier was of Today vs. 2007-2009, and this one is Today vs. 2000-2003 recession…
Again… we may not be in a recession…. What do I know…
But if we are and there’s more down to go… maybe this can help you build a strategy to get you through it in one piece.
The 35EMA here is also a very strong resistance during the entire 3.16 year span of the 2000 recession. Again, it’s support in the good times, resistance in the bad. It’s one of the many reasons this is my main EMA.
Right now (the bottom chart) we are right at the 35EMA (just below it I should say) It is my personal bias that we do see more downside. And you better believe that the 35EMA on the weekly is going to be my cue when this is all over.
In both recessions the drawdown was between 50-55% from top to bottom in the S&P (It was more in nasdaq)
In both recession the 35EMA on the weekly was a consistent resistance throughout the entirely of the recession. Once the 35EMA became support again the bottom was in… and that is what I will be looking for in the case as well...
I would also like to add that All time highs from 2000 returned in 2007----> just in time for the next recession LOL 🤣 There you have it...
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I am not your financial advisor. Watch my setups first before you jump in… My trade set ups work very well and they are for my personal reference and if you decide to trade them you do so at your own risk. I will gladly answer questions to the best of my knowledge but ultimately the risk is on you. I will update targets as needed.
GL and happy trading.
IF you need anything analyzed Technically just comment with the Ticker and I’ll do it as soon as possible…
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.