Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🎁 Free Gift Friday: Copy Legendary Investors' Portfolios in One ClickCopy for Free

Major Stock Market Indexes Try To Form Double Bottoms

ByChris Kimble
Published 10/06/2022, 05:07 PM
Updated 07/09/2023, 06:31 AM

With stock markets in deep decline, traders must stay cautious and adhere to their plans.

At the same time, it is smart to identify potential technical patterns and what-if scenarios to help identify potential trend changes.

Today, we look at a chart 4-pack to identify potential double bottom patterns. 

The stock market indices shown below are the Invesco QQQ Trust (NASDAQ:QQQ), NYSE Composite, Russell 2000, and Wilshire 4500.

QQQ, NYSE Composite, Russel 200, Wilshire 4500 Weekly

As you can see, these patterns have A LOT of work. Aggressive traders can only act on potential patterns with tight stops. More importantly, traders/investors should ask, “what will confirm this pattern?” To that end, each of the four indices would need to clear the downtrend lines at each (2).

These downtrends are a critical macro technical level across the four charts. Be safe, and stay tuned.

Latest comments

He was actually correct. Mr. Kimble forecast was accurate, and he often provides very helpful intelligence. His cautionary tone is based experience. Just read his other articles. Particularly, regarding Banks, Ie.  BKX index and 2-year treasury yields.
It may look like double bottom or inverse H&S, but without a fundamental change the bear trend will stay in motion. Imagine what happens if these alleged patterns are invalidated.
picture is blurry when clicked on
picture is blurry when clicked on
wait for the triple bottom to fall apart 🤣 it ain't over until the fat lady sings 🤣
A double bottom implies a lot from QT reversing, inflation being under control, geopolitical tensions easing… it would represent a chance to cut at least all the losses this year in half. Def some rose colored glasses to see the market in that view.
from a short-term perspective is what he's trying to say in the article you got maybe two to three weeks at most if that before the next bounce in Theory without any geopolitical issues that the stock market will really react to be careful don't be too Leveraged right now
i see H&S forming
Giant H&S
several months big yes
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.