Reading charts is just one part of trading a bear market, another highly significant part is a solid understanding of market psychology, heuristics and biases. Having spent 14 years in a QE fuelled bull market where there were few inexplicable events and certainly no major forced liquidation events, it is easy to understand why so many participants get so excited...
Very similar price action to May around the end of the month, there is a potential rising wedge forming into the 27th June coinciding with a backside retest of the 2 year uptrend channel that was finally broken back on the 13th June. Keep eyes peeled for indications of selling picking up into that area.
Just a quick note on the Eurostoxx specifically to highlight:
1. We are now most definitely trading below the 2 year uptrend that was causing the ongoing corner formations, good to get that out of the way
2. The index has found support temporarily off the March lows and various highs from 2020
3. If this breaks, which we expect it will sooner or later, the...
In a recent market colour we advised clients to prepare themselves for an increase in market velocity and the usual volatility that goes with that. Some agreed, some didn't, and that's great, that's what makes the market. We were already looking at one of the worst starts to the year since 1939 and April alone was one of the worst months for the Nasdaq in history,...
As our first post it is essential to publish our longer term trend channel work as it provides the larger backdrop to our more detailed and shorter term work that we will be publishing in due course.
Starting with the Eurostoxx 50 Index (SX5E) we saw a 19% rally in as many trading days off the March lows only to run into resistance and the 3 month downtrend...
