Jakspara I agree with you. There is plenty of downside left. The...

Jakspara I agree with you. There is plenty of downside left. The US markets have more room to go lower. As a student of history I look at where the market crashed to in the 2000 and the 2008 and use this as a " guide" as to where the markets can come down to. Lets briefly take a look.

Using the lows of the ES 7.09 in 1930's to the high of 2000 of 1573.75 the market crashed to its 50% pull back at the 790s
https://www.screencast.com/t/EAm0AiBzm

Again using the same low to now new high of 1586 in 2007 the market crashed further down below its 50% retracement at the 665s.

https://www.screencast.com/t/728bvN9NzD

Now lets look at our current market high of the ES of 3397.50
https://www.screencast.com/t/CBBtZmDLBXwR

Looking at my last chart you will notice the 50% pullback is down at the 1702s. I anticipate the ES to come down to these levels and possibly lower.

On Tuesday the 3rd of March at 10 am was a key moment in the reversal of this market. The US had an emergency rate cut. Powell did this to combat the effects of the Corona virus. He did a 50 point basis cut. This was the 4th rate cut in succession. This usually means you are in a recession. From the moment they started cutting rates the Federal reserve and the markets need 500 basis points of rate cuts to avoid a recession.

So technically the US went into a recession on the 3rd of March 2020. That's when the markets (algorithms) started their huge selling programs.

Since that rate cut, every single piece of stimulus really isn't good news. Why? because the US have this situation where they have to get to -250 basis points. The FED has said they are not going to do - 250. So what are they going to do? They are going to print trillions of dollars. This is now affecting the indices which in turn will and is affecting our local market.

So as the US markets, Dow Jones Sand P 500 etc crash to their 50% retracements and lower our stock market will also take a hammering.
And that's when I will load up on good quality stocks. I anticipate EXR to make lower lows, which will give us the opportunity to invest at a very good price.

Trading What I See