The decline of U.S. stocks on 11/20/25 was so brutal that at times it looked like it could last forever. For the main trading session, it was forever, as the main U.S. stock indices closed the day at or just above their lows.
The daily S&P 500 (SPX) chart courtesy of Trading View shows what happened.
The 11/15/25 blog “S&P 500 – Alternate Elliott Wave Count – 11/14/25” noted that a bullish Elliott wave pattern would be invalid on a move below 6.550.78. Which happened on 11/20/25.
The 11/13/25 blog “U.S. Stock Market at a Crossroad – November 2025” noted important Dow Jones Industrial Average support was at the 11/07/25 bottom. This low was broken on 11/17/25.
There’s a high probability that the main U.S. stocks indices have made a significant peak, and that the early part of a multi-month decline is underway.
The 10/10/25 SPX micro crash was 211.70 points. The 11/20/25 micro crash was 236.30 points. The bears are getting stronger.
The action on 11/20/25 was also a break below the SPX October 2025 bottom. Using the Strat method the next downside target is the September low at 6.360.58.
The daily RSI has yet to reach the oversold zone which begins at 30.00. Both lines of the daily Stochastic have reached the oversold zone which starts at 20.00. On the daily time scale Stochastic could remain in the oversold zone for days or even weeks before a significant bottom is made.
The main factor favoring a bullish scenario is that November is a seasonally bullish month. There are only five trading days remaining in November. If the SPX ends November 2025 down from its open, it adds to the case that an important peak is probably in place.
Four Dimension Trading 