Hello traders,
This week is confirming what seems to be one of the most important technical events for the investment world. The bull trap at the mother of all resistance, the S&P historical top of 2020 February.
This type of event has the power to change everything in all markets due to its huge power of destruction. Note that on the one hand it maybe means that we have never been so wealthy before, on the other hand possibly there is a world resection ahead.
For whom does not understand what it means. When an asset breaks out a very important level like its historical resistance. It is expectable a fast and profitable bull run because there are no more resistances above such level. So the prices are willing to move fast and the bulls are at a great advantage. However, when the bulls break out such resistances and the bear almost immediately are able to push the prices down. It is possible to take a piece of very interesting information about the market, the bulls are extremely weak and fragile.
This bull weakness at the biggest economy of the world is not good news for any market around the world. With the exception of precious metals markets like gold or silver that are recognized safety assets. As traders, we still are able to be profitable in a recession market, but it is necessary extra caution when exposed to risks at this moment because if the American economy starts a recession movement, all global markets will tend to follow such a move and start a recession as well.
For more analysis like this, push the like button and follow our profile at the Tradingview.
This week is confirming what seems to be one of the most important technical events for the investment world. The bull trap at the mother of all resistance, the S&P historical top of 2020 February.
This type of event has the power to change everything in all markets due to its huge power of destruction. Note that on the one hand it maybe means that we have never been so wealthy before, on the other hand possibly there is a world resection ahead.
For whom does not understand what it means. When an asset breaks out a very important level like its historical resistance. It is expectable a fast and profitable bull run because there are no more resistances above such level. So the prices are willing to move fast and the bulls are at a great advantage. However, when the bulls break out such resistances and the bear almost immediately are able to push the prices down. It is possible to take a piece of very interesting information about the market, the bulls are extremely weak and fragile.
This bull weakness at the biggest economy of the world is not good news for any market around the world. With the exception of precious metals markets like gold or silver that are recognized safety assets. As traders, we still are able to be profitable in a recession market, but it is necessary extra caution when exposed to risks at this moment because if the American economy starts a recession movement, all global markets will tend to follow such a move and start a recession as well.
For more analysis like this, push the like button and follow our profile at the Tradingview.