In my previous post on US
markets, I wrote on 8th July 2020, I wrote, “If we look at the given chart of Nasdaq 100, we can see that
the index is moving within the channel and now it has reached the upper end of
the channel. The resistance for Nasdaq lies at 11000 levels.
S&P500 is having
resistance at 3250 levels. What I infer from charts is that markets have
reached a significant resistance level and the likely movement from here is
downwards.”
Since then the US
markets have stretched and gone up another 10% If we look at the given weekly
chart of S&P500 we can see that it is moving in an expanding triangle and
it has reached the upper end of the triangle.
I think S&P is ripe for some serious correction, Statistically, September has been one of the worst months for S&P and the valuations look super stretched and I won’t be surprised if it starts in September.
