Connect with us

October is the killer of bear markets

Stocks & Forex

October is the killer of bear markets

This time it has left important footprints. You better be aware of it.

October has been a month rich in high-profile events:

  • Musk bought Twitter;
  • USDJPY topped 150;
  • Change of prime minister in the UK;
  • The fall of Facebook;
  • and many others.

These news are popularly covered in the mainstream media. But here is a chart that claims to be the main event; few could notice it.

Statistically, October is considered the “bear market killer” because it is the month when the stock markets turn up. In 2022, the 13th was special.

S&P-500 futures

Pay attention to 2 events that happened in October:

  1. Abnormal growth of quotes. It is anomalous in that in 2 days the price of the contract has risen too quickly for a downtrend that has been in effect since the beginning of the year.
  2. October 13th candlestick with long lower shadow and extremely high volume. After it, the price of the contract shows a steady growth, finding support on local pullbacks, which are approximately equal to 50%.

Both events indicate the presence of demand in the area shown by the green rectangle. This zone can become the basis for the development of a new uptrend in the stock market. And the October low will thus prove to be an important low in the long term.

So if the price falls close to the specified zone, this will serve as a reason to consider the idea of ​​opening a long position in the US stock market.

Share this post. This will help you make big money in the next bull market (which has already started?)


Continue Reading
Margarekt Tether

Journalist. I follow stock and forex markets

More in Stocks & Forex

To Top