US100 Consolidation Bearish Pressure correction

May 25

US100 is showing signs of a possible bearish reaction after a strong bullish rally but momentum is slowing down, candles are getting smaller, and price is struggling to break higher, which often signals exhaustion and profit-taking by big institutions.

Tecnically reason behind bearish pressure is the current market uncertainty around the Federal Reserve, inflation, and interest rates. Traders are worried that the Fed may keep interest rates higher for longer, which negatively impacts tech stocks and the Nasdaq. Rising bond yields are also creating pressure because investors move money from risky assets into safer investments.

At the same time, AI and big tech stocks have already rallied very strongly in recent months, making valuations expensive. Because of this, many traders expect a healthy correction before the market continues upward again.

Technically, if US100 fails to hold above 29,850 and breaks below support around 29,600, the market could continue falling toward 29,200. However, if buyers gain strength and break above 30,000, then the bearish setup may fail and bullish momentum could continue higher.

You may find more details in the chart,
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May 26

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