How low will Stocks go

Global Markets Stocks and Indexes
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US Dow 30 just went below 30,000 and is on course for the largest one-month drop in market history

What is your guess for how low will stocks go, let’s use the DOW as our measuring stick

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I’ve had this shaded area marked out on the weekly chart for a few weeks now. Never thought it would actually happen, but here we are.

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Could June be the largest stock market drop in history, so far the DOW is down 3200 in June, back in March 2020 during the first month if covid shutdowns the DOW lost 3600, it has down more but rallied. Will we get a rally this month or will markets continue to sell off elcliping March 2020.

And can someone telling what the freaking hell is happening that is worst than covid to cause such a selloff, this is a clear message from the market they have no confidence in the current administration or Fed to deal with inflation

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“Sell in May and go away - don’t come back 'til Labour day …!”

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that sure is working this year, not such much last year

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The market is still higher than it was before Covid. I think it’s a bold claim to say things aren’t worse now than they were before Covid happened. With inflation way higher than wage growth, surely the markets have to go down quite a lot more before they go up again. A recession still seems probable although central banks seem to think not and they know more than me…

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I have no idea!! All I know is what goes down must come up, unless this is the end of the world… Question is when will it come up and how far down will it go.

Personally, and i’ve posted this fairly consistently, I think there is a recession coming. Copper is crashing below it’s major support on daily chart and oil was doing similar before the week-end until it had a last little upthrust. Seems recession fears outweighing supply problems at the moment in commodities such as oil and industrial metals. So i’m not going to buy the dip on any large scale just yet.

I’m sorry about the world economy, but part of me breaths a sigh of relief cos I went short on oil and copper just before the invasion!! Made huge paper-losses which are gradually now turning into profit! Phew.

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I am seeing nothing to suggest this current rally will not end in another new low.

this rollercoaster has more dips ahead, hold on

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Yup, Agreed. i’m not seeing much support on that chart.

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And copper dropped 25% for same time period with a long way to go before it hits any support lines / MA’s.

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Here are a couple of stocks that made a higher low in the last market dip, Telcom stocks have been out of favor for some time now, and have really gotten cheap and they offer a pretty good dividend. It is a sector that is recession-proof too, I don’t see anyone giving up their cell phone in order to be able to afford a Latte at Starbucks

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Yeah, like you say - classic defensive stocks. Tobacco also doing well. Japan Tobacco up 20% in same time period.

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I like the sector but US tobacco is lagging ( MO) , you will get a fat 8% yield at this price

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I hate always being right but this sure does look like to start of the next leg down

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The bottom could have a long way to go, and the not-so-funny thing, the party in charge of Congress is acting as if they have already won the November elections

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Yup. We’ll see. Day started slightly bullish but ended in a rout. I agree prob about ready for the next leg down, barring any surprises. Copper seemed to be bottoming out over last few days, but I reckon prob a false floor. Crypto and Nasdaq seem to be leading the charge down. Good company earnings (e.g Nike) don’t seem to be oferring any protection against share price dropping.

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I’m waiting, slightly nervously, for that big assertive drop…

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I reckon today…