S&P500 major red flags as fears of an all-out war become real
I couldn't ignore the recent troubling news from the East and had to publish this post. Escalating military aggression in Ukraine and realistic fears of an all out open war are becoming more prominent with each day. War means markets will tank and right now the major S&P500 index is showing that.
On the technical side a head and shoulders pattern on a weekly chart with RSI divergence is supporting this as well as another test of an uptrend line from May 2020. If this level breaks, potential projection of a pattern is to fall to around 3600 level. The 200SMA is also coming close to that point.
A trigger for this must be geopolitical, if military aggression proceeds we could see a major fall in the markets.
I hope politicians will come to their senses and stop before someone pushes the red button, but we have to be ready for anything.
Good Luck!
On the technical side a head and shoulders pattern on a weekly chart with RSI divergence is supporting this as well as another test of an uptrend line from May 2020. If this level breaks, potential projection of a pattern is to fall to around 3600 level. The 200SMA is also coming close to that point.
A trigger for this must be geopolitical, if military aggression proceeds we could see a major fall in the markets.
I hope politicians will come to their senses and stop before someone pushes the red button, but we have to be ready for anything.
Good Luck!