Over the past few years, financial markets have experienced various trends and movements, influenced by a range of factors. In 2021, one notable trend was a bull run in many markets, which was partially driven by a looser monetary policy from central banks aimed at supporting economic recovery during the COVID-19 pandemic. However, there were other factors contributing to the market rally, including improving economic data and the rollout of vaccines.
As the year progressed, concerns over inflation began to arise, as increased money supply lead to rising prices. Additionally, political tensions such as the conflict between Russia and Ukraine may have contributed to market volatility .
In 2022, there was a bearish correction in some markets, with investors concerned about the potential for rising interest rates and other economic factors. However, recent market movements suggest that the correction may have bottomed out, and there is potential for new bullish rally in 2023.
According to the Fibonacci retracement indicator, the correction has stopped at around 0.68, which is a positive sign that the trend may move upward. We can also we can look at the Elliot Wave theory. the Elliot Wave theory is useful here because it would seem that we are on steep three out of five which also would be a great argument. Do have in mind that this can be biased in user interpretation, so it should not be relied upon entirely.
It is important to note that technical analysis is not the only basis for making market predictions. After the closure of the Silicon Valley bank, there is a possibility of a financial crisis similar to the one in 2008. Additionally, if investors remain uncertain about the market's direction, there may be volatility this year.
Overall, the market could move up, down, or sideways, potentially waiting for a larger rally or correction. It is worth noting the possibility of a financial crisis, but it should also be recognized that there have been talks of one for several years without any significant events occurring.
As a hobby investor, i will be waiting for a larger confirmation before buying into the S&P 500 which follows the American economy adequently. Please note that I am not an expert, but I am merely a hobby investor who has found a new idea. Be safe.
As the year progressed, concerns over inflation began to arise, as increased money supply lead to rising prices. Additionally, political tensions such as the conflict between Russia and Ukraine may have contributed to market volatility .
In 2022, there was a bearish correction in some markets, with investors concerned about the potential for rising interest rates and other economic factors. However, recent market movements suggest that the correction may have bottomed out, and there is potential for new bullish rally in 2023.
According to the Fibonacci retracement indicator, the correction has stopped at around 0.68, which is a positive sign that the trend may move upward. We can also we can look at the Elliot Wave theory. the Elliot Wave theory is useful here because it would seem that we are on steep three out of five which also would be a great argument. Do have in mind that this can be biased in user interpretation, so it should not be relied upon entirely.
It is important to note that technical analysis is not the only basis for making market predictions. After the closure of the Silicon Valley bank, there is a possibility of a financial crisis similar to the one in 2008. Additionally, if investors remain uncertain about the market's direction, there may be volatility this year.
Overall, the market could move up, down, or sideways, potentially waiting for a larger rally or correction. It is worth noting the possibility of a financial crisis, but it should also be recognized that there have been talks of one for several years without any significant events occurring.
As a hobby investor, i will be waiting for a larger confirmation before buying into the S&P 500 which follows the American economy adequently. Please note that I am not an expert, but I am merely a hobby investor who has found a new idea. Be safe.
Trade active:
Entered trade at 4035 dollars. Hopefully my thesis was right. Trade looks good.