$SPDR S&P 500 ETF Trust(SPY)$ closed below the 200-day SMA 6 times in history.
Every single time, it recovered.
Here's every time it broke, what caused it, and the return after it crossed back above 200SMA again:
π΄ Sep 2000 β Apr 2003 (31 months)
Dot-Com bubble burst. Trillions in overvalued tech stocks imploded.
Drawdown: β49% | 1Y return after: +33%
π΄ Jan 2008 β Jun 2009 (17 months)
Global Financial Crisis. Overleveraged banks, toxic mortgage debt collapsed.
Drawdown: β57% | 1Y return after: +45%
π‘ Aug 2011 β Oct 2011 (3 months)
US credit downgraded for the first time ever. Euro debt crisis erupted.
Drawdown: β21% | 1Y return after: +27%
π£ Feb 2020 β Jul 2020 (4.5 months)
COVID-19 shut down the global economy overnight.
Drawdown: β34% | 1Y return after: +43%
π΅ Jan 2022 β Feb 2023 (12.5 months)
Fed hiked rates at the fastest pace in 40 years to kill inflation.
Drawdown: β25% | 1Y return after: +26%
π Feb 2025 β Mar 2025 (1.5 months) β WE ARE HERE
Tariff war shock rattled global markets. SPY hit $481.
Drawdown: β31% | 1Y return after: +40%
Avg 1Y return after crossing back above the 200SMA: +35%
Episode 6 just triggered. The market has never NOT recovered. This time it will recover fast as soon as the WAR is over.
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