So the bearish view is now invalidated. No head and shoulders, no re-test of the low. We have no broken upwards and should see US500 follow US100's pattern up higher.
The only thing to be wary of is that BTC did something very similar (in fact, this exact pattern) a few months ago. It eventually DID retest the lows, but after a massive pump like this that made it seem as if it never would. This could happen with stocks as these equities were already overextended before this pump happened.
So why is it happening? One word: tech. Tech stocks are propping up the indices right now, especially those that have any relation to AI. Their massive bullish breakouts are keeping these candles up despite the majority of stocks being bearish. So as I said before, they are the foundation to his house of cards - if they fall, the indices fall.
I'm now looking for buys but am wary of a BTC repeat if / when Nvidia and other similar stocks finally correct and retest their lows. At that time we may finally see the lower part of the channel re-tested, just as we saw occur with Bitcoin.
For reference, the similar channel that occurred on BTC:
The only thing to be wary of is that BTC did something very similar (in fact, this exact pattern) a few months ago. It eventually DID retest the lows, but after a massive pump like this that made it seem as if it never would. This could happen with stocks as these equities were already overextended before this pump happened.
So why is it happening? One word: tech. Tech stocks are propping up the indices right now, especially those that have any relation to AI. Their massive bullish breakouts are keeping these candles up despite the majority of stocks being bearish. So as I said before, they are the foundation to his house of cards - if they fall, the indices fall.
I'm now looking for buys but am wary of a BTC repeat if / when Nvidia and other similar stocks finally correct and retest their lows. At that time we may finally see the lower part of the channel re-tested, just as we saw occur with Bitcoin.
For reference, the similar channel that occurred on BTC: