S&P 500

If one looks at macro-economic indicators, we are of the opinion that markets are still to continue their decline. The blue trend line, to the downside is still in tact, of course things could change, but we believe that it is the current trend. The yellow line is also agreeing with macro-economic indicators, as it is showing lower, lows, further evidence of the decline.

In technical analysis one may say that the market declines and eventually it breaks the yellow line to start a new trend, in this instance we would not agree, as the macro-economic indicators are indicating further market pull-backs.

Lastly macro-economic indicators are showing a potential for deeper market pull-backs than 2000 and 2008, time will tell if the macro-economic indicators, show the bottom of the market at roughly 2300, as it did in 2020, however there is the potential that it could go even lower.

Disclaimer: The article is an opinion and not an indicator to buy or sell. Wealthgrowth Investment Management (Pty) Ltd, trading as Wealth Growth Investment Management, is an authorised financial services provider, South African Financial Sector Conduct Authority F.S.P. number 46007.