MTS Help Center

Looks like a ‘double top’ in the S&P 500, investor Mark Mobius warns

The S&P 500 is forming a “double top” going into the U.S. election, which is a worrying sign for investors, according to veteran investor Mark Mobius.

A double top is a bearish technical indicator, where an asset’s price hits two consecutive highs with only a moderate decline between the two peaks. If the price then falls below the support level reached during the intermittent low, a double top is confirmed.

Mobius also suggested that U.S. and global markets will suffer if Joe Biden wins, but only in the short term as investors wait to see what policy measures Biden pursues.

“If he decides not to impose tax increases, then that would be good for the markets, so we have to watch what the actual actions are once he gets into office, if he does get into office.”

Reference: CNBC