- COVID-19 already in the price
- Expecting FED to cut the rate and pump more liquidity, which markets still not priced in
- Expecting the Vaccine and anti-virus are coming soon
- Heard behavior started, but may not be done yet
- RSI Daily already oversold
- expect S&P500 to rebound within 3-6 month to close the Gap at 3328 or 10% upside
Weekly Price reach +2SD, expect “healthy correction” in near term to the middle of regression band. RSI and price pattern also tend to signal “Bearish divergence”
Fundamentally, earning already in the priced, as well as impeachment and virus relieve are also in the price. Trade war relieving also in the price.
Only FED super dovish and crazy balance sheet...
In the past 2 interest rate cycle, after UST10Y peaked and went down, it came down together with S&P500 bear market.
At this current cycle, it's totally different with big divergence. UST10Y came down for more than a percent while S&P still keep breaking new high amid monetary stimulus.