S&P 500 locally

S&P 500 moved pretty high today, but don't fall for a bull trap, it's just a part of the correction. The price is moving in a descending channel right now and I expect that it will go down to the support area at 5650 tomorrow and hit a red trendline. Then it will either go for a deeper correction or maybe start a new growth wave.

Note

If it's not just a channel extension, this idea is most likely failed. I've been waiting for 5800, but later - outside of the old channel. It stopped right under an important trendline (which is a border of another wide channel). If the price breaks through this trenline and stays inside the ascending channel this week, it will most likely keep going up to 6000+.

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So I want to share my vision regarding what's going on here. The Fed and USDT just thrown $100 billion taken from reverse repo and bonds into the stocks to add liquidity by giving it to banks. They knew the stocks would go down on bad CPI report but they don't want it. Pure pre-election manipulation. Previously they used to buy dips to prevent major corrections, but looks like they have started to act more agressively ahead of elections. They have $200 billion left in reverse repo - record low since 2021. The companies are also on record lows on money for buybacks. But looks like it's just enough to hold the markets from crashing till elections. Logically speaking they don't have motives to keep pushing stocks higher after the elections, and I don't think they have a goal to push S&P to 6000, but who knows, maybe I don't fully understand their motives. What do you think?

Supergalactic

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Supergalactic