## Expert Analysis: Market Trends and Potential Risks
### The Current Market Situation
– US and Dow Jones indices closed lower on Monday and Tuesday
– Nasdaq100 followed suit
– Index of small public companies lost for four consecutive sessions
– Signs of a potential correction similar to August
– Risk of a bear market beginning
### Key Indicators
– CNN’s Fear and Greed Index hovering in the 70-75 range since late September
– Volatility index spiked above 20 in early October
– Unusual nervousness despite historical highs being updated
– Current levels slightly higher than in US presidential election years
### Market Dynamics and Volatility
– High volatility expected in the week before and after the election
– Volatility often signals falling markets
– Prolonged pre-election uncertainty due to a close race between candidates
– RSI and price divergence for the S&P500 indicate potential risks
– Price above July peak while RSI peaked and fell back
### Potential Risks and Correction Targets
– Risks tilted to the downside in the coming weeks
– Fibonacci pattern suggests the 5600-5700 area for the S&P500 as a potential correction target
### Conclusion
– The market is showing signs of a correction and potential bear market
– Investors should be cautious and monitor key indicators closely
## About the FxPro Analyst Team
The FxPro Analyst Team provides expert insights and analysis on financial markets to help investors make informed decisions and navigate market volatility effectively.
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In this expert analysis, we discussed the current market trends, key indicators, and potential risks that investors should be aware of. The market has shown signs of a correction, with the US and Dow Jones indices closing lower in recent sessions. The Fear and Greed Index, along with the volatility index, indicate heightened nervousness and potential downside risks in the coming weeks.
Investors should pay close attention to market dynamics, volatility patterns, and key indicators like the RSI and price divergence for the S&P500. The Fibonacci pattern suggests a potential correction target in the 5600-5700 area for the S&P500 if markets do not stabilize.
Overall, it is essential for investors to remain cautious and proactive in monitoring market trends to protect their investments and financial future.