The post Why recession warnings signal a major stock market correction ahead appeared on BitcoinEthereumNews.com.

Nasdaq 100, S&P 500, Dow Jones, and tech giants face critical support levels Concerns about an imminent US recession are casting a shadow over Wall Street, driving the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJI) toward critical support levels. Following four consecutive weeks of losses, investors face heightened uncertainty amid escalating trade tensions, rising inflation forecasts, declining consumer confidence, and weakening leading economic indicators. Nasdaq 100: First stage of a major correction The Nasdaq 100 has plummeted over 11% from its record high of 22,222. With prices now testing key support at 19,437, the index closed slightly higher at 19,753 (+0.39%) on Friday. However, weakness remains evident, indicating the first stage of a potential major correction. Historically, corrections unfold in four stages as part of a healthy market reset. If support at 19,437 holds, a short-lived rebound could target 19,932, 20,054, 20,433, 20,744, and potentially 21,050. Failure to maintain this level could trigger stage two, aiming for 17,825. Historical patterns suggest a possible four-stage correction of around 33%, targeting approximately 14,835. Technical indicators like RSI and MACD further underscore the bearish momentum. S&P 500: Bull run reversal underway The S&P 500 edged higher by just 0.08% to close at 5,667 after a four-week decline. It is now down over 7% from February’s peak of 6,147. The index has broken its bullish daily structure, signalling the start of a major correction. Critical support at 5,542 must hold to avoid further downside. If support holds, a temporary rebound could reach targets of 5,662, 5,737, 5,858, and 5,932. Failure to maintain 5,542 would lead to the second stage, targeting 5,151. Given current economic pressures, a four-stage correction resembling past corrections is plausible, potentially reaching as low as 4,564. Technical analysis indicates weakening momentum, as indicated by bearish crossovers in…

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Filed under: News - @ March 23, 2025 11:21 pm