SPX S&P 500 Daily Chart Displaying -17% Stock Market Crash after August 2011 Credit Downgrade

The US credit rating is downgraded by Fitch a few hours ago. As Yogi said, "It feels like deja vu all over again." The August 2011 downgrade was exciting and the drama is shown in the 2011 chart above. The US credit rating was placed on negative outlook in April 2011 and then the bottom fell out four days after a debt ceiling agreement on the actual downgrade; the first in US history. Stocks were already tanking and the 8/5/11 downgrade sealed the fate of stocks for almost 3 months.

In only 11 days, in late July early August 2011, the US stock market (SPX; S&P 500) crashed -17%. The black circle is the death cross. Will history repeat or maybe rhyme? It is a similar set-up and the same time of the year. Fitch placed the US on rating watch negative in May 2023 (this year). Back then, the stock market fell apart into the October low.

At the low you see all the indicators sloping higher with positive divergence (green lines; price continues dropping but ALL the indicators are sloping higher indicating that they are fueled-up and ready to launch price into the stratosphere). Voila. The possie d shoots price higher off the bottom in October 2011 with a rocket launch as the indicators foretold.

S&P futures are down -15 points right now on Tuesday evening on the US East Coast and were down more than -20 points a short time ago. The bulls plead, "Don't Drag Me Down." Not a big move lower but the credit rating downgrade creates a pall over the market.

King Donnie Trump is also indicted again for more of his nefarious deeds. The orange head was a whining cry baby sore loser after losing his reelection bid in November 2020 due to his own sh*tty campaign, and he unfortunately, for him, chose a bad and baby path forward until he left office 1/21/21. They're all crooked; Trump, Bidens, Clintons, Bush, Obama, McConnell, Pelosi, Schumer, McCarthy, all of them.

The full moon peaked at 2:30 PM EST today. The Canadian fires, that were likely set on purpose by environmental and climate change nutcases, will make the full moon appear orange this evening. The orange moon will match Donnie's orange head. The US government and all of its institutions are corrupt to the core. The crony capitalism system is breathing its final breaths after the last five decades of obscene greed (corruption) and non-transparency. The downgrade is a bombshell dropped on Tuesday Afternoon. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.