Stock Market

Dow Jones Industrial Average Market Structure Breakdown for EIGHTCAP:US30 by Block-Chain-Gang

Looking at how market price action is trading and the corresponding macro economic situation in relation to the sentiment I do believe people are looking for tail events to drag prices down rather quickly. However I think we should consider the possibility that things grind out in somewhat similar fashion that they have been since November of 2021. Lots of sideways with periods of downwards price action as the Fed policy leaks down into the economy over time. The effects of tightening are not yet in full effect but as this becomes more and more the case naturally asset prices will drop over time with a few exceptions of course there are always outliers like gold potentially or even bitcoin although it does not look good for crypto at the moment. My point here is that the $DJI in particular is only down around 10% from its all time high and this latest rebound in the S&P 500 although on a rather micro time frame is showing me that at least currently price action is not representing that panic and fear that causes capitulation. The Fed’s own words are that they will continue with rate hikes until inflation reaches their target and that the markets rallying recently is a sign that they might need to continue with aggressive action. So in speculation I like to plan for everything and expect nothing. The potential that price does not find dramatic or aggressive moves down on a sustained basis is a real possibility without some kind of real “black swan” type of event which is always possible. High time frame trading should only be considered if your able to enter at these kinds of points in the chart otherwise I’m using a consistent profit taking strategy. Think about it people are favoring short term interest over long term which means people are committing liquidity for shorter periods of time. This reflects in the chart. Any moves up are met with moves back down as well as moves down met with moves back up even if they are much smaller than the moves down they provide massive opportunities to exploit bear market rallies which can be even more explosive than bull market rallies which we see here in the Dow in this most recent run up. The most recent breakout of the consolidation zone here at the end of the first trading week of the new year is telling me that potentially they are seeking liquidity from buyers particularly new years optimism buyers. In terms of HTF trade it may be wise to see what Monday / Tuesday price action brings because there is potential for price to come back up into that high time frame zone where we would have expected smart money to be taking their shorts while retail was buying. Short term it is possible to trade any range and the setups appear on much smaller time frames. If you want to learn more about that I offer a mentorshit (yes its a joke have some humor) program where you can learn from me directly. Visit my website to find out more.
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