September 13, 2022, 2:56 pm EDT
Preparation for a New Low & Major Sell-off (SPY)
The stock market prepares for a new low and major sell-off as shown in the featured chart for the S&P 500 ETF (SPY).
Our 08/17 article mentioned pullback time. In addition, 08/26 Trouble time indicated the key support level at 408. Obviously, the stock market gave us a strong voice on the coming new low and major sell-off that we should not ignore.
The next key support is at 390 for SPY. However, it seems to be fragile support. Once it breaks, SPY will head down to its final support at 365 which is our low for 2022. Touching, breaking, or falling below 365 will trigger a major sell-off. Fundamentally, the major wave of the bear markets and recession will arrive together.
It could offer opportunities for traders who can manage risks for selling short, put options, or leverage-bearing ETFs. In general, bears will be fully charged to launch attacks on the stock markets, housing markets, and job markets.
Everyone should be prepared for it.
