Extreme Uncertainty - How will we look back on this in 10 years?
The stars have aligned ... literally 2 weekends ago there was a lunar eclipse and this weekend there is a solar eclipse. Ironically, they mark the side corners of this diamond formation that has appeared on the chart for every major world indices. It's a chart pattern that is define by "uncertainty", and is confirmed by the increased volume. Both that pattern as well as parabolic behavior are commonly seen at major tops, but there is still strength pouring in, in the form of retail investors, and institutions still have incredible amounts of cash that could flow into the market.
Some key points here that are aligning as well:
- the diamond happens to be centered along that major 3-year support/resistance line
- the MACD is preferring a downward trend, while the major Hull EMA is still rising
- the trend has finally reached the angle it was at before the March crash
- the current price is situated under all of these key lines with a short-term slightly downward trend
It's no surprise that there's uncertainty right now, because in the realm of our market cycle and society we are experiencing the same things (i.e. CoVid, foreign relations, etc.). And aligned itself nicely with the point at which our market makers, retail investors, and fund managers all have to decide how to play the next several months.
Tomorrow is a day that we'll look back on in the future and analyze the decisions that were made. At such a key time for our market, every player is set to re-balance for the coming, and on top of that there are the most option contracts ever expiring on a single day. Will we decide to put the uncertainties aside and ride the market to new highs, or will we prepare for the downward journey as it deflates back to reality? We'll likely have our answer next week, so buckle up.
Some key points here that are aligning as well:
- the diamond happens to be centered along that major 3-year support/resistance line
- the MACD is preferring a downward trend, while the major Hull EMA is still rising
- the trend has finally reached the angle it was at before the March crash
- the current price is situated under all of these key lines with a short-term slightly downward trend
It's no surprise that there's uncertainty right now, because in the realm of our market cycle and society we are experiencing the same things (i.e. CoVid, foreign relations, etc.). And aligned itself nicely with the point at which our market makers, retail investors, and fund managers all have to decide how to play the next several months.
Tomorrow is a day that we'll look back on in the future and analyze the decisions that were made. At such a key time for our market, every player is set to re-balance for the coming, and on top of that there are the most option contracts ever expiring on a single day. Will we decide to put the uncertainties aside and ride the market to new highs, or will we prepare for the downward journey as it deflates back to reality? We'll likely have our answer next week, so buckle up.
כתב ויתור
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