American economy will face another low - NASDAQ 100 analysis
After a market meltdown, we are now in the situation of a nice correction, price action creating a W pattern and reached previous major gap opening.
Furthermore, from a technical perspective price reached the 61 golden ratio fib of the previous impulse, aligned with the 200MA and of course, previous structure which means there is a very high probability of finding strong supply zone around the 8300-8500 price area. A lot of confluence for the second wave to the down side.
From the fundamental view, the US is now providing bubble support for the businesses and overall economy, creating even more inflation by having 0 Interest rates and printing money. They have just delayed the crash up until now in order to keep the liquidity and delay the real meltdown.
The Boom factor plays its role aside, America facing half a million people infected. New York having more than 180k might get quarantined and the banks could be also temporarliy closed in the near future.
First quarter earning season is almost finished (latest on 15 May) and most probably companies will signal bad results due to the economical pandemic slowdown.
Gold is trading at 1700, continuing strong on bullish momentum. We expect new record highs.
The 10 Year cycle has come to an end, and based on previous knowledge, considering all these factors we are expecting a financial crisis.
The moment when fear will occur in the market we will see people making billions and people going broke. It is what it is.
Our trading plan is to short the Index and scale in once we get confirmation. The downside target is 6000. However we might see even lower lows.
Be prudent trading, stay safe
Furthermore, from a technical perspective price reached the 61 golden ratio fib of the previous impulse, aligned with the 200MA and of course, previous structure which means there is a very high probability of finding strong supply zone around the 8300-8500 price area. A lot of confluence for the second wave to the down side.
From the fundamental view, the US is now providing bubble support for the businesses and overall economy, creating even more inflation by having 0 Interest rates and printing money. They have just delayed the crash up until now in order to keep the liquidity and delay the real meltdown.
The Boom factor plays its role aside, America facing half a million people infected. New York having more than 180k might get quarantined and the banks could be also temporarliy closed in the near future.
First quarter earning season is almost finished (latest on 15 May) and most probably companies will signal bad results due to the economical pandemic slowdown.
Gold is trading at 1700, continuing strong on bullish momentum. We expect new record highs.
The 10 Year cycle has come to an end, and based on previous knowledge, considering all these factors we are expecting a financial crisis.
The moment when fear will occur in the market we will see people making billions and people going broke. It is what it is.
Our trading plan is to short the Index and scale in once we get confirmation. The downside target is 6000. However we might see even lower lows.
Be prudent trading, stay safe