After reaching the resistance zone of the upward expanding megaphone pattern just as we forecasted back in April, the Volatility index (VIX) has formed a strong intra-day reversal head and shoulders pattern on the 1H chart. This coincides perfectly with the positive divergences we are seeing on some of the benchmark US indices like the SPY and QQQ, which we believe is signaling for investors that the worst in terms of market declines might be behind us.
The sentiment for risk assets in general has reached max levels of fear and negativity and usually this is a good moment to start adding back some risk exposure to your portfolio.
We will be releasing a more detailed report and analysis in the coming week on what we expect from the markets moving forward and how we are positioning our portfolio.
Good luck out there!
The sentiment for risk assets in general has reached max levels of fear and negativity and usually this is a good moment to start adding back some risk exposure to your portfolio.
We will be releasing a more detailed report and analysis in the coming week on what we expect from the markets moving forward and how we are positioning our portfolio.
Good luck out there!
