How is the American stock market going and where is it headed

After a year-to-date decline of almost 20%, many are starting to wonder when it is worth investing in stocks, and which are the most convenient. Listed on American stock exchanges and other international markets, there are many stocks with a high dividend and also greatly undervalued compared to the fair value estimated by experts. After last week’s price hike, is it time to go back to buying stocks, ETFs and mutual funds?

Let’s proceed step by step.

The trading session on 16 September closed at the following levels:

Dow Jones

30,822.42

Nasdaq C.

11,448.40

S&P 500

3,873.32.

How is the American stock market doing?

Long-term forecasts

In red, the forecast for 2022. In blue, the path followed by the American markets from the beginning of the year until the close of 16 September.

The closing of last week may have definitively confirmed that prices could take a divergent path from now to mid-October compared to bullish expectations. Further confirmations are awaited from the week that has just begun.

But could the decline that began in January for the main world stock exchanges be archived immediately?

The odds are still bearish. The levels to be monitored at the end of this month are as follows:

Dow Jones

34,282

Nasdaq C.

13,182

S&P 500

4,326

If September closes below these levels, probably, according to proprietary trading systems, the following price areas will be reached during the month of October:

Dow Jones

29,500 / 29,000

Nasdaq C.

10,600 / 10,300

S&P 500

3,600 / 3,400.

How is the American stock market going and where is it headed

Dow Jones

Very short bearish trend until we see a daily close above 30.867. Lasting highs only with this weekly close above 32,505.

Nasdaq C.

Very short bearish trend until we see a daily close above 11.461. Lasting highs only with this weekly close above 12,271.

S&P 500

Very short bearish trend until we see a daily close above 3,960. Lasting highs only with this weekly close above 4.120.

TAKE ADVANTAGE NOW! 15 days FREE of multidays and weekly forecasts

Buying or selling stocks?

Proprietary trading systems project falls from now on, although some oscillators are diverging. Today it will be important to understand if the last few days of decline have been a false signal or not, and if now a bearish phase of several percentage points begins.

Better to wait for developments from today.

Recommended reading

Because BTPs are falling and it is not the right time to invest

The results of the forecasts in this article are based on statistical calculations explained in the ebooks published by ProiezionidiBorsa and processed on the basis of the available price history. (We also remind you to carefully read the warnings regarding this article and the author’s responsibilities, which can be consulted HERE”)

Leave a Comment