Do you know what’s in store for the stock market this coming week? I do…
There are a few key chart patterns to watch the week of Sept. 27 that’ll help keep investors one step ahead of the market.
But first, let’s take stock of what happened this past week to get a good idea of the pattern that’s been developing.
On Monday, the market opened with a ton of panic. The China Evergrande risk-off news rippled throughout various sectors, the Nasdaq dipped almost 3% and the S&P 500 fell about 2%… so stocks were just getting pounded.
It was an ugly look we haven’t seen for a few months now.
Luckily, Federal Reserve Chair Jerome Powell came to the rescue by — you guessed it — saying everything is fine and to keep buying assets.
But through it all, the market ended up bouncing exactly where I predicted it would.
Check it out below.
2 Key Chart Patterns to Watch the Week of Sept. 27
On Monday, Sept. 20, I said this might be the day the S&P 500 tests the 4,300 level. A bounce at the 100-day moving average would be optimal.
A failure to hold that support would see us next test 4,100, and then the huge psychological level of 4,000.
It ended up bouncing right where I warned traders it would, rising 2% as a result.
However, the problem now is that the S&P is still in this saggy downtrending pattern. To get out of this pattern, we will need to break back above the 4,500 level this week.
Until we do that, the S&P 500 will continue to trend down and once again test the 100-day moving average.
But that’s not the only move investors should be on the lookout for this week…
Interest rates started to move the exact way I was afraid they would. A ton of investors were caught offside and their portfolios took some major damage…
Were you one of them? If so, things are about to get a lot worse for you…
Learn more about chart patterns to watch the week of Sept. 27 by watching my video below!
As always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
