SPX - Finally a Correction?
The channel that formed in November has been beautiful to trade but it seems like we have finally started to see some cracks in it.
We are looking at a 4-hour chart here and it looks like we had bear trap and a bull trap all within a few days. We have broken the prime trendline, retested it, and have resumed down off of it with heavy selling pressure. I think the bulls are finally exhausted and it is time for people to start taking profits from the high growth equities and repositioning their holdings to value.
The VIX has closed above 25, the dollar is gaining momentum (even though I am extremely bearish on the dollar), the Put/Call ratios were at extreme lows, and interest rates are starting to rise. The pullback in cryptos also seems like a leading indicator for a continued selloff in the equity markets. There's still a big case for the bulls considering more stimulus coming, continued vaccination rollouts, and decreasing COVID hospitalizations. I just don't think that is enough of a case for these large institutions to reevaluate their holdings, take some profits, and reposition themselves.
I am not a financial advisor and this is not financial advice. Due your own research and formulate your own theories. Good Luck!
We are looking at a 4-hour chart here and it looks like we had bear trap and a bull trap all within a few days. We have broken the prime trendline, retested it, and have resumed down off of it with heavy selling pressure. I think the bulls are finally exhausted and it is time for people to start taking profits from the high growth equities and repositioning their holdings to value.
The VIX has closed above 25, the dollar is gaining momentum (even though I am extremely bearish on the dollar), the Put/Call ratios were at extreme lows, and interest rates are starting to rise. The pullback in cryptos also seems like a leading indicator for a continued selloff in the equity markets. There's still a big case for the bulls considering more stimulus coming, continued vaccination rollouts, and decreasing COVID hospitalizations. I just don't think that is enough of a case for these large institutions to reevaluate their holdings, take some profits, and reposition themselves.
I am not a financial advisor and this is not financial advice. Due your own research and formulate your own theories. Good Luck!
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