The US Stock Market Crash Of 2022: An Analysis
The comments below are an edited and abridged synopsis of an article by Robert McHugh
The stock market has declined sharply between November and March in ten of the past fourteen years (71% of the years). This happened again from November 2021 into early 2022.
In this article, McHugh examines the characteristic of this recent plunge and questions whether there will be another one in 2022 and, if so, how deep stocks will fall.
Here is what we know: The stock market just crashed; itwas predictable; it was orderly; it was relatively mild; it will not be the only stock market crash of 2022 or 2023.
Today’s stock market is ready for a bear market for the ages, one that will include multiple plunges and crashes along the way.
The set up of finished bearish patterns, completed Elliott Wave mappings, overbought conditions, overextended rallies, extreme positive sentiment, negative turn cycle occurrences (there are an extraordinarily high number—18—of phi mate and Bradley model turn dates coming in 2022), advance/decline line bearish divergences, and Hindenburg Omens is one of the most ominous that McHugh can recall in the 30 years he has been doing technical analysis stock market forecasting.
This gets back to what technical analysis of markets is all about. The stock market has a language of its own, and is telling us where it is headed next. Markets are the accumulation of all knowledge known on earth, which is built into pricing. That pricing forms patterns, and creates a language that we can study to understand what the market is telling us about its future.