Nasdaq along with other US stock indices has been recovering a big chunk of losses since last week.
However, obviously, we are not out of the wood, and if we ain't, do we sell or wait?
There's still a pretty good chance we see the market tank for a second time and one of the reasons is that the pullback is still well lesser than 10%.
If you go back and look at every major pullback up to early 2020, you would have realized every major pullback went well over 10%
Another consideration is the current fundamentals are different as well - we now have a serious risk of inflation while back then we don't and the market has a lot to pump the stock market with their stimmy checks from the Fed.
Right now, we are seeing a probably M formation in the making, a formation of a bearish bat completed and just nicely seated between the Fibo levels of 61.8% and 78.6%.
Well, this trading could go wrong as far as the stock market is concerned, I think we do have a valid trade setup to sell with low risk and high reward ratio.
Besides, the price is considerably high if we based on the entire range of the market as marked out with a channel.
However, obviously, we are not out of the wood, and if we ain't, do we sell or wait?
There's still a pretty good chance we see the market tank for a second time and one of the reasons is that the pullback is still well lesser than 10%.
If you go back and look at every major pullback up to early 2020, you would have realized every major pullback went well over 10%
Another consideration is the current fundamentals are different as well - we now have a serious risk of inflation while back then we don't and the market has a lot to pump the stock market with their stimmy checks from the Fed.
Right now, we are seeing a probably M formation in the making, a formation of a bearish bat completed and just nicely seated between the Fibo levels of 61.8% and 78.6%.
Well, this trading could go wrong as far as the stock market is concerned, I think we do have a valid trade setup to sell with low risk and high reward ratio.
Besides, the price is considerably high if we based on the entire range of the market as marked out with a channel.
