The bear market falls within a “amazing distance” within a few weeks, warning strategies

With the continued economic uncertainty, due primarily to commercial wars, the expert warns that financial markets are likely to witness continuous losses and can enter the bear area within weeks.

Chris Vermolin, the chief market strategy of the market in Artistic traderHe warned that S&P 500 and NASDAQ show signs of weak interview With David Lane, published on March 30.

He acknowledged that the wonderful seven shares have long supported market gains but stumbled, which may have serious effects on the wider sector.

As a summary, the stock market ended the March 28 session in red, with the s & P 500 high standard of about 1 trillion dollars in one day. Meanwhile, the index technology shares formed the first “death cross” for three years, a declining sign that indicates more forward.

Despite these losses, Vermeuln emphasized that the Bear market has not yet started because this negative aspect usually determines a 20 % decrease from the last highlands. However, it has warned that the circumstances indicate that the deeper decline may be imminent in the coming weeks.

According to Vermolin, the wonderful seven will be the driving force behind the market shrinkage. Their massive effect can accelerate losses and amplifying fluctuation.

“I think we are a great distance the next week, less than a week or two weeks to enter the bear market. <...> The seven wonderful, all the big forces and pockets of stocks, have price procedures indicating much lower prices. This will withdraw NASDAQ, SP 500 down and create investors among investors. ”

S & P 500 and Nasdaq the following goals

Using technical analysis tools such as Fibonacci accessories, Vermeulen set a negative goal for the S&P 500 by about 5,183. This level will represent a 15 % decrease from its peak and an additional 7.5 % decrease from the current levels during the two weeks to two weeks.

He expected that Nasdak could see a more severe decrease, which could decrease by approximately 11 % of its current location in the same time frame, up to a total decrease from the last levels to 22 %.

He looks to the future, sees the coming weeks a pivotal moment, expecting the markets to reach major negative goals before finding support and regulating multiple recovery.

However, it is still skeptical of complete recovery, believing that the market has already reached its climax and is unlikely to reach new levels.

Besides this temporary apostasy, Vermelen expects an extended contraction that can indicate the beginning of the financial crisis. He sees increasing risks for the investor investor widely with the emergence of declining signals across stocks and major sectors.

Maintaining wealth

For long -term investors, they focused on maintaining wealth, Vermelen advised to raise the money in the next recession to protect the capital. However, he has warned of confidence in banks with money due to the fragility of the banking system, instead, which indicates gold as a safer alternative.

He added: “I think there are two ways in which you can play.

The expert also highlighted possible opportunities during the decline period, noting that the assets such as the US dollar index and bonds tend to rise when the markets decrease.

As the other sharp market decreases on the horizon, Vermelen expects a potential bear market within weeks, followed by a short recovery – and possibly a wider financial crisis.

Watch the full interview below:

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