Why the ASX200 is going lower (March 25, 2020)
The COVID-19 pandemic has spurred on a catastrophic 39% decline over 5 weeks in the ASX200 .
Right now we're seeing the beginning of a bullish retracement as negative sentiments start to ease globally.
But with most market crashes historically, nothing ever falls in a straight line. There are always retracements in a down market, otherwise known as dead cat bounces.
This chart shows the ASX200 during the Global Financial Crisis ( GFC )
Be careful (protect capital) - wait for a solidified foundation before going long - don't try to catch falling knives.
Right now we're seeing the beginning of a bullish retracement as negative sentiments start to ease globally.
But with most market crashes historically, nothing ever falls in a straight line. There are always retracements in a down market, otherwise known as dead cat bounces.
This chart shows the ASX200 during the Global Financial Crisis ( GFC )
- The full declines took an entire year and a half to play out
- 28 weeks in, the ASX200 had a 50% bullish retracement spanning 8 weeks.
Be careful (protect capital) - wait for a solidified foundation before going long - don't try to catch falling knives.
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