While the current negative attitude is “bullish,” the longer-term fundamental and technical dynamics indicate that a further correction is possible. As previously stated, the negative mood levels could underpin a rise in the coming months. This would entice investors into the market just as the fundamental and technical backdrops become more pessimistic.
Chart below shows Events everytime nasdaq composite 100 index dropped 100 Week moving average.
|2007-2008||Housing market collapse financial crisis|
|2012||EU Debt crisis|
|2016||CNY Devaluation and Brexit|
|2018||Federal reserve taper tantrum|
|2022||Inflation/War/Fed credibility issue / “Putin’s fault”|