Delusional, reflexive herd bounceDoesn't really matter what market pair you are looking at, pretty much all equities and assets are looking to make a reflexive bounce. The highlighted portion is a 200 day linear regression channel and we could make a bounce towards the middle of the channel until monetary policy changes come to fruition starting in March.
The market was willing to sell on the pure notion of a policy change, it didn't even require any actual changes, with the exception of the FED buying slightly less junk.
Imagine what happens when the tightening policy comes into effect in one month, and the junk buying halts.
Imagine how many will be sucked back into the market only to chase their losses.
It doesn't really make sense for the market to dump more here, -*even though it could*-, because the downside/upside risk:reward is pretty much equal here and it seems like the easier, short-term option is to curl towards an area of lesser resistance in order to amplify our future expectations.
