Are we due a big correction?
Updated
All the indicators seem to suggest so but Ive heard talk that Biden won't let the stock market crash this early into his administration. However, the market remained somewhat negative after Fed chair Powells' testimony, while the US bond market remain fairly strong suggesting stable interest rates. Does the worry come from if low interest rates are only temporary? I don't know much about American politics, and this all VERY new to me so if you have anything to add relating to fundamentals and news please share.
Technicals:
- Firstly we saw a sharp dump in Cryptos. These often react much faster than the stock market although the two markets positivly correlate.
- Rounding top indicates there are a lot of sellers in the market currently. Possibly panic sellers in anticipation. Can signal a reversal.
- Cross over of the 9 and 21 EMAs above the 200 EMA. Singles reversal in market direction
- RSI moving to indicate momentum to the downside.
We're getting a lot of technicals suggesting we could see a big correction. I anticipate that if this is the case we will see a fall to these previous levels as shown in purple rectangles.
*I am not an expert and am currently learning- id love to hear your thoughts below*
Technicals:
- Firstly we saw a sharp dump in Cryptos. These often react much faster than the stock market although the two markets positivly correlate.
- Rounding top indicates there are a lot of sellers in the market currently. Possibly panic sellers in anticipation. Can signal a reversal.
- Cross over of the 9 and 21 EMAs above the 200 EMA. Singles reversal in market direction
- RSI moving to indicate momentum to the downside.
We're getting a lot of technicals suggesting we could see a big correction. I anticipate that if this is the case we will see a fall to these previous levels as shown in purple rectangles.
*I am not an expert and am currently learning- id love to hear your thoughts below*
Comment
RIP
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