Индекс S&P 500
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S&P - Why it's strongly bearish and where will be reversal?📉

Recently we broke yearly level and those confirmed bear trend in global economy.

What was the catalizator of this:
• War in Ukraine. Sanctions against Russia inflated prices in Europe and central banks across the world are raising interest rates in an attempt to fight inflation.
• COVID in China. Because of harsh anti-covid policy, thousands of businesses and factories were temporarily closed and thousands of ships were just left drifting for 2-3 months near the ports, awaiting the end of this mess. Needless to say that this ruined lots of production chains across the world.

Sadly that's only the beginning and in future we may see new global problems.
1. World hunger. As Ukraine and Russia were exporting 1/3 of TOTAL wheat supply, amount of available resources will become much more scarce. This will drive total prices for meat, grain products and oil much higher.
2. New sanctions against Russia or russian counter-sanctions on crude oil/gas.
As winter approaches, oil and gas will become more important than ever. Russia may use it to it's own advantage by introducing sanctions against unfriendly countries, which is all of Europe. Price for those products can easily increase x3-x5 which will make cost of living and producing products much higher. A lot of bubble or break-even companies will die out.

If those two will happen, cost of living for an ordinary man will rise through the roof which will decrease total wealth and global economy as people will buy less.

From technical analysis we may see a strong bounce from 0.382 Fibonacci level or even reversal. By looking at such picture, I find myself strongly bearish but can't lose hopes for this madness to end.


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analysisBearish PatternsChart PatternsFundamental Analysisfundamental-analysislong-termpredictionshortTrend Analysis

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