Last week's CFTC Commitments of Traders shows that a large number of long positions in NASDAQ 100 remain open.
In addition to this, the US Money Supply M1 increased last week.
This supports why the price has rejected a strong level of support from the July High.
Sentiment still remains bullish as retail traders still trying to buy the dips.
There are two scenarios I'm looking out for:
The bullish sentiment remains as the FED keeps buying securities. It could push the price higher to:
In addition to this, the US Money Supply M1 increased last week.
This supports why the price has rejected a strong level of support from the July High.
Sentiment still remains bullish as retail traders still trying to buy the dips.
There are two scenarios I'm looking out for:
The bullish sentiment remains as the FED keeps buying securities. It could push the price higher to:
- Complete a impulse-correction-pattern and test the all time high.
- Create a retracement to at least the 0.382, 0.5, or 0.618 Fibonacci levels
I know what you're thinking. Whether you are the trader who bought the dips or the one who thrives in a bear market, the fact that there's a huge disconnect in financial markets around the world should not be ignored. The US Markets have been on a rally since March. On the other hand, most of European indices have only been able to recover 50% - 61.8 % from the March bottom. Indices from the Asia Pacific region have brought in mixed results. The Hang Seng HKXHKD , Australia's AUXAUD and Singapore's SIMSCI have recently been struggling to stay bullish. However the Chinese CHN50 and the JPXJPY have shown completely different results. These has been brought about by the different ways in which countries have handled the pandemic issue.
With winter in the northern hemisphere around the corner; risks of lockdowns and a surge of new covid19 cases and death toll, we are definitely heading for a volatile season.
My advice, stay fluid, expect anything, be ready to adapt, be ready to react.
