S&P DROP 20 Trading Strategy

S&P Drop 20 Trading Strategy is an investment strategy that aims to show growth in a Bear market. Here is how to profit on the S&P 20% Drop Strategy:

1) Get the S&P’s last all time intraday high. As of the time of this writing (March 2025), that would be 6147.43 hit on February 19, 2025.

2) Subtract 20% from that figure: That would be 4917.94

3) Once investors see the S&P 500’s intraday low go lower than #2 above they would then set their Market Timing Indicator to trade the ups and down of the Bearish 3/0 signal.

Note: You will need a subscription to the Index Trading System which gives you access to an app that times the ups and downs and sends you trade alerts.

4) You stop following the trade alerts sent by your Market Timing Indicator one month AFTER the S&P is no longer 20% below it’s last all time intraday high. In other words, if the S&P can remain above a 20% drop for one full month. The trade is over. Close out your ETF and go to cash and wait for the S&P to drop below 20% again.

Note: In the last 17 years, this signal has occurred 9 times. It is not something you need to look for everyday. You’ll hear in the news when the S&P drops 20% as most media talks about it. When you hear of the S&P crashing, it could be time to start this strategy and profit off this trade.