Bulls are hoping this is simply a 2-legged pullback and, certainly, since we're at support level, time is ripe for a leg up to resume the bull trend, right?
I'm not so sure about that because something tells me we could see the market break lower because of this sole reason:
The 3-week bear trend trend looks intact. If you just look at the closing prices of each daily candle (check the line chart), you will see a strong bear trend. The lower highs (of the closing prices) do not overlap the lower low preceding it. I like my pullbacks to have that overlap (especially in the chart that I am trading, which in this case is the daily chart). But here, bearish momentum seems pretty strong still and any rally could simply be a bull trap.
That is why this 3,230 level is very important IMHO.
I am hoping to be wrong as I am long some risk assets but we shall see.
I'm not so sure about that because something tells me we could see the market break lower because of this sole reason:
The 3-week bear trend trend looks intact. If you just look at the closing prices of each daily candle (check the line chart), you will see a strong bear trend. The lower highs (of the closing prices) do not overlap the lower low preceding it. I like my pullbacks to have that overlap (especially in the chart that I am trading, which in this case is the daily chart). But here, bearish momentum seems pretty strong still and any rally could simply be a bull trap.
That is why this 3,230 level is very important IMHO.
I am hoping to be wrong as I am long some risk assets but we shall see.