When Markets Break, They Follow a Pattern

Using 2020 and 2025 as a guide

If you want to understand what markets do during stress, I always use examples.

Price movements in markets are a function of behavior.
And behavior rarely changes…

Alert:
This isn’t about predicting another COVID-style crash.
It’s about recognizing behavior.

With the markets down ~7% from the January 28th highs, AI inflated prices, rebalancing, the Iran/US war… the SPX recently crossed the 200 Day EMA.

The 200 Day EMA is a leading indicator for technical analysts.
It’s boring, but it has merit.

You’ll see why below…

But it’s not just price crossing the 200 Daily EMA that matters… it’s the behavior around that cross… that’s what matters.

When we get a specific behavior, now we have something worth examining.

So with everything going on in today’s markets, I went to the charts to find examples of this behavior.

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Note: These examples lead up to today’s price behavior… seen below

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