Here are the historical cases when:
Here are the historical cases.
March 28, 2018 (current case)
May 20, 2004
March 4, 1994
January 18, 1990
January 25, 1962
September 11, 1959
July 2, 1951
May 20, 2004
March 4, 1994
January 18, 1990
January 25, 1962
September 11, 1959
July 2, 1951
Conclusion
We can draw 2 conclusions from this study:
A break below the 200 day moving average has no predictive value for the medium-long term. Sometimes the market makes a medium term bottom soon after it breaks below the 200sma. Sometimes the market falls much more below its 200sma. A breakdown is irrelevant for the medium-long term.
