Looking at this monthly chart the price of the ASX 200 INDEX shows we could have a drop in the market for a few months at least starting in May.
The supertrend monthly is down and the price will have to fight at as resistance if it wants to move higher. However historically it has been rejected and a drop lower occurred before it actually climbed over it.
I have circled the area of the 2008 crash as the comparison is similar. The drop happened and the climb was fast until it was near the supertrend and it tested it twice before the market went lower. It actually took 5 years before the market was higher. I believe we are in a similar boat now.
The supertrend monthly is down and the price will have to fight at as resistance if it wants to move higher. However historically it has been rejected and a drop lower occurred before it actually climbed over it.
I have circled the area of the 2008 crash as the comparison is similar. The drop happened and the climb was fast until it was near the supertrend and it tested it twice before the market went lower. It actually took 5 years before the market was higher. I believe we are in a similar boat now.
