History Mirror: Why the Crash Will Not Happen Again?

EliteOptionsTrader
08-12

$S&P 500(.SPX)$ just made new ATHs while $Invesco QQQ(QQQ)$ is still stuck. History says we crash 20% from here. But here’s why we don’t 👇

This EXACT divergence has happened 3 times before. Once it led to a multi-year bull run. Twice it preceded 20%+ crashes. How could the same setup have such different results?

Here's how to tell which one you're dealing with:

🐻 2007 & 2018: One tired sector carried the index to its final high. Narrow leadership, no confirmation underneath. Both topped within months

🐂 2013: $S&P 500(.SPX)$ broke out while $Invesco QQQ(QQQ)$ lagged its highs. Tech eventually caught up and the bull ran for YEARS

Right now?

$Financial Select Sector SPDR Fund(XLF)$, $Health Care Select Sector SPDR Fund(XLV)$, $SPDR Dow Jones Industrial Average ETF Trust(DIA)$ are leading. Tech gets to sleep in while other key sectors push the market higher. History says this is 2013, not 2007

The number that validates it is 🎯 $Invesco QQQ(QQQ)$ 727

📈 Reclaim it = next stop is the ATH retest at 748, no resistance between here and there

📉 Fail it = you already know what 2007 and 2018 looked like

Everyone's staring at $S&P 500(.SPX)$ celebrating a high that tech hasn't even confirmed yet

727. Watch it.

Options Hub
Welcome to Tiger Options Hub! Here you may talk and learn about all things on options trading!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment