S&P500 Small Correction Before Break to The Upside
Bull Markets go through 3 phases:
1. Stealth Phase- this is where the smart money positions themselves for the run. (2020) or Just check Nancy Pelosi's portfolio.
2. Awareness Phase- this is where we are at and have been at since the last two months when it has become common knowledge the Fed is going to decrease spending and tighten monetary policy . Sentiment gets hot and results in a pullback. All of these fundamental factors are being priced in and are likely very close to completion. The entire market knows exactly where it's going, there are no more surprises to send the market into a spiral. Excluding the unforeseen/outliers.
3. Mania Phase- Bull Market ends in a euphoric blow-off top. This is where my thesis suggests the market is about to enter. A strong break out above All-Time high from here could spark this potential rally.
Key Reminder- 80% of all US Dollars in circulation today were printed in the last 23 months. This is likely not where you want to place your capital.
Technical Analysis- Each movement higher has been set by the RSI touching support indicated on the chart. It has done it 8 times since November 2020. I expect this time to be no different.
1. Stealth Phase- this is where the smart money positions themselves for the run. (2020) or Just check Nancy Pelosi's portfolio.
2. Awareness Phase- this is where we are at and have been at since the last two months when it has become common knowledge the Fed is going to decrease spending and tighten monetary policy . Sentiment gets hot and results in a pullback. All of these fundamental factors are being priced in and are likely very close to completion. The entire market knows exactly where it's going, there are no more surprises to send the market into a spiral. Excluding the unforeseen/outliers.
3. Mania Phase- Bull Market ends in a euphoric blow-off top. This is where my thesis suggests the market is about to enter. A strong break out above All-Time high from here could spark this potential rally.
Key Reminder- 80% of all US Dollars in circulation today were printed in the last 23 months. This is likely not where you want to place your capital.
Technical Analysis- Each movement higher has been set by the RSI touching support indicated on the chart. It has done it 8 times since November 2020. I expect this time to be no different.