- How to Confirm a Stock Market Crash
- To confirm a stock market crash, look for these key indicators:
- Major Index Drop: A decline of 20% or more from recent highs is a clear signal.
- Surging Volume: Increased trading volume on down days indicates panic selling.
- Rising Fear Index: A spike in the VIX (Volatility Index) suggests heightened market anxiety.
- Economic Signals: Watch for rising unemployment and slowing GDP growth as warning signs.
- Technical Breakdowns: Key support levels breaking down can confirm a downturn.
- Negative Sentiment: A surge in adverse media coverage reflects growing investor fear.
- Investor Confidence: Surveys showing declining confidence can precede market declines.
- By closely monitoring these factors, you can effectively gauge whether a market crash is underway. Stay informed and prepared!
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