Indicators show when prices stop falling

Dusseldorf The US stock market is currently shaking off all the burdens. The leading index S&P 500 gained 3.7 percent in the past week. The new week also got off to a good start on Monday – despite all the burdens of rising interest rates and the threat of recession. That’s important because Wall Street sets the direction for stock markets around the world.

Many investors are therefore wondering whether all the negative news has been priced in and the price has already bottomed out. Although this question can only be answered in retrospect, there are indicators that offer orientation.

For example, Bank of America names ten indicators that have indicated a price bottom in the past. In the past, eight of these ten indicators had to be met for prices to stop falling – this is currently only the case for four. The Handelsblatt presents the indicators below and classifies their importance.