A huge selloff has occurred in the price of $SPX since the beginning of this year after the market opened on the first trading day of the year at $4784.65. On the second trading day which was on the 4th of January, the price reached a new all-time high at $4817.87. The bearish confirmation was on the year’s third trading day after $SPX lost over 80 points in a day. The month of January was bearish for $SPX after its loss of over 260points, which was almost a 6% loss from the year’s opening price of $4776.61. Just like the American market, the European and the Chinese markets had a poor January as the market was majorly bearish. In January, $SPX had the worst month since March 2020. Our analysts forecasted the price drop of $SPX in one of our articles in January 2022.
The sell-off in January was due to the Fed signaling its readiness to tighten monetary policy, including raising interest rates multiple times this year to tame inflation that has shot up to the highest level in almost 40years. The $SPX has been a bull market over the decades. The sell-off in January was a normal correction expected in a bull market. The correction of $SPX made the price hit the lowest price in January at $4221.07. A bounce from the dip occurred in the last week of January as a Doji was formed, which could lead to the beginning of price recovery. The bulls are beginning to gather momentum as the price closed at $4505.15, about 7% price appreciation from the January low. As the bulls begin to become more active, the price could reach $4805.68 in the coming weeks. Price has currently crossed to the upper region of the Bollinger bands on the 4hr chart.
In the 12 months of 2021, $SPX had a new all-time high in each of them. $SPX has continued with a new all-time high in January before the dump. Will a new all-time be reached in February?
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