In a hurricane the EYE of the storm is region of "calm" and even blue skies
To the unaware, the break in the clouds and the blues skies may bring a sense of relief that "the worst is over"
But the informed know that the OTHER SIDE of the storm is coming and the worst has yet to happen
IMO the aforementioned scenario accurately describes what we are about to see in markets
The Administration is slowly backing off the more severe of the tariffs
Over the weekend they removed tariffs on major electronics and associated components coming from China which should bring a sense of relief to markets
We will most likely see continued softening on the worst of the tariffs as the administration grapples with the true reality of things: MARKETS ARE IN TROUBLE
This softening will give the appearance that things will be OK and we may even see markets rally to new ALL TIME HIGHS
But a rally to new ATHs will be akin to the "eye of the storm" as just like with a Hurricane..the other side of the storm is coming
To the unaware, the break in the clouds and the blues skies may bring a sense of relief that "the worst is over"
But the informed know that the OTHER SIDE of the storm is coming and the worst has yet to happen
IMO the aforementioned scenario accurately describes what we are about to see in markets
The Administration is slowly backing off the more severe of the tariffs
Over the weekend they removed tariffs on major electronics and associated components coming from China which should bring a sense of relief to markets
We will most likely see continued softening on the worst of the tariffs as the administration grapples with the true reality of things: MARKETS ARE IN TROUBLE
This softening will give the appearance that things will be OK and we may even see markets rally to new ALL TIME HIGHS
But a rally to new ATHs will be akin to the "eye of the storm" as just like with a Hurricane..the other side of the storm is coming
Trade active
FED will most likely lower rates in May which will contribute to the feeling that "everything will be ok"Trade closed: target reached
cnbc.com/2025/04/14/trump-tariffs-recession-hassett-insider-trading.html"Trump aide Hassett says U.S. got ‘amazing’ tariff deal offers, recession ’100% not’ happening"
:)
Remember in March 2007, Federal Reserve Chairman Ben Bernanke initially stated that the U.S. housing crisis, including the subprime mortgage crisis, was "likely to be contained"?
Time will tell...
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I know this has a lot going on but you can manage :)The GREEN highlighted AREA is what reeeaaaallllyyy NEEDS TO HOLD for this market to reach new ATHs IMO
Of course all things are possible in markets but for me that area is CRITICAL..lets see
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Actually here is a cleaner viewNote
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Something like this Im thinkingNote
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Ok just a bigger version of the same patternNote
Actually had to tweak this as I was breaking an EWT ruleNote
Potential FLAT correction playingThis decline is going to be ugly it seems
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PREDICTION"Market Tops between 06/23 and 07/09
SHARP decline until 08/26 and the we reassess from there
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Finance sector should be on HIGH ALERT right nowNote
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Which version of a FLAT correction will we get?If we make a marginal new all time high then it would be the EXPANDED version
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BE CAREFUL IF YOU ARE LONG!!!!Note
TOPPING it seemsNote
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.