Critical point for US indices
Since the sell-off in US indices we have seen in January, the market has temporarily corrected above the 61.8% Fibonacci level, meaning that until it crosses the 66-67 level, a reversal of the downtrend has not yet been signaled, meaning that the US 500 at this point might actually be in a dead cat bounce position. A double top with low volume is forming while the price is being supported by the 200 MA. This point is critical in making or breaking the market. We could probably see a crash if price fails to move above the 66% Fibonacci level and break upward resistance levels. If this theory is correct, the Apple position I had suggested earlier, might become invalid as the systemic risk of the market brings the price of Apple down with it and vice versa. One good short right now might be Tesla. Please see my previous dd.
NOT FINANCIAL ADVICE!
NOT FINANCIAL ADVICE!
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