Are we seeing a repeat of past situations, or has the market tru
If we look at ETFs like QQQ, we can notice price breaks between sessions, let's see where these interruptions occur.
First interruption this is a gap of $1.50, which represents an increase of approximately 2.6%, from $59 to $60.
Second interruption occurs between $63 and $66, which implies an increase of 3.5%.
On the chart, we can also observe a bullish channel that, due to the strength of the buyers, has not been respected, so far we could consider the price to be in a phase where it could take a break or pull back, which would be healthy for QQQ.
We have seen similar behavior in stocks with low market caps, which experience a phenomenon known as "pump and dump", where they rise non stop and then fall, therefore, a break in the price is considered healthy.
Continuing with the analysis, in the past, the QQQ has shown patterns that are usually respected, although these can take days, weeks or even months to complete, for example, from July 16 to 17, there was a strong bearish opening that left a gap of $2.50 this pattern was repeated from July 23 to 24, and currently, the price has already completed half of that gap.
Based on previous patterns, we can assume that a bullish move in QQQ of approximately 2% is expected, around $1.50 upwards, considering this, it might be prudent to wait for that move to complete to enter a bearish position and take advantage of the pullback, especially since the price is at resistance at $72. normally, when price first hits resistance, it tends to pull back as buyers decide to take profits.
The Goldman Sachs Bull/Bear indicator is a cool way to check the market sentiment Currently, it is at 70% levels, indicating bullish sentiment and widespread optimism among investors However, this level can also be a cause for concern, as such a high indicator could signal a possible correction in the market. Although it is not an exact science and it is difficult to predict when a correction will occur, we can analyze historical examples to better understand its behavior
November 2007 during this period, there was a real estate boom and a strong economy, a context reflected in the film "The Big Short" at that time, the goldman sachs indicator was close to 70%, and shortly after, the market began to correct, kicking off the 2008 global financial crisis.
January 2020 the market was experiencing a continued rally due to optimism around monetary policy and widespread positive sentiment, however in February 2020, a sharp decline began due to the onset of the COVID-19 pandemic.
December 1999 the rise of technology companies during the dot-com bubble led to extremely optimistic sentiment in march 2000, the bubble popped, resulting in a prolonged decline in this case, the Goldman Sachs indicator was also close to 70%.
In my point of view, the market can rise a little more but it should have a final bullish impulse and be able to begin to retreat, historically september has been one of the weakest months of the year.
First interruption this is a gap of $1.50, which represents an increase of approximately 2.6%, from $59 to $60.
Second interruption occurs between $63 and $66, which implies an increase of 3.5%.
On the chart, we can also observe a bullish channel that, due to the strength of the buyers, has not been respected, so far we could consider the price to be in a phase where it could take a break or pull back, which would be healthy for QQQ.
We have seen similar behavior in stocks with low market caps, which experience a phenomenon known as "pump and dump", where they rise non stop and then fall, therefore, a break in the price is considered healthy.
Continuing with the analysis, in the past, the QQQ has shown patterns that are usually respected, although these can take days, weeks or even months to complete, for example, from July 16 to 17, there was a strong bearish opening that left a gap of $2.50 this pattern was repeated from July 23 to 24, and currently, the price has already completed half of that gap.
Based on previous patterns, we can assume that a bullish move in QQQ of approximately 2% is expected, around $1.50 upwards, considering this, it might be prudent to wait for that move to complete to enter a bearish position and take advantage of the pullback, especially since the price is at resistance at $72. normally, when price first hits resistance, it tends to pull back as buyers decide to take profits.
The Goldman Sachs Bull/Bear indicator is a cool way to check the market sentiment Currently, it is at 70% levels, indicating bullish sentiment and widespread optimism among investors However, this level can also be a cause for concern, as such a high indicator could signal a possible correction in the market. Although it is not an exact science and it is difficult to predict when a correction will occur, we can analyze historical examples to better understand its behavior
November 2007 during this period, there was a real estate boom and a strong economy, a context reflected in the film "The Big Short" at that time, the goldman sachs indicator was close to 70%, and shortly after, the market began to correct, kicking off the 2008 global financial crisis.
January 2020 the market was experiencing a continued rally due to optimism around monetary policy and widespread positive sentiment, however in February 2020, a sharp decline began due to the onset of the COVID-19 pandemic.
December 1999 the rise of technology companies during the dot-com bubble led to extremely optimistic sentiment in march 2000, the bubble popped, resulting in a prolonged decline in this case, the Goldman Sachs indicator was also close to 70%.
In my point of view, the market can rise a little more but it should have a final bullish impulse and be able to begin to retreat, historically september has been one of the weakest months of the year.
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