Six days ago, we warned about the potential “bear market rally” in the SPX. Since then, the SPX has broken above the sloping resistance and gained 5%. Despite that, we still maintain a bearish notion of the U.S. stock market. We expect the bear market rally to be short-lived and weakness to return. Illustration 1.01 The picture above shows the sloping...
Similarly to Bitcoin, Ethereum enjoys the temporary lift up from the return of risk apettite and climbing stock market. We expect the bear market rally in the stock market to be short-lived. Therefore, we have no reason to change our medium and long-term outlook on Ethereum (we remain bearish). We expect weakness in the cryptocurrency to stay persistent throughout...
In our previous post, we warned about the bear market rally. Since then, the Nasdaq 100 index has reversed to the upside and continues to climb. Most titles within the U.S. stock market have rallied hard so far; however, in our opinion, these massive moves are not characteristic of a healthy market. Instead, they are indicative of the bear market. At the same...
Yesterday, we warned that the correction in Ethereum was nearing its end. A few hours later, ETHUSD broke down and fell approximately 10%. We continue to be bearish on ETHUSD, and our short-term price target stays at 1800 USD. However, we would like to set also a second price target of 1700 USD. Technical analysis - daily time frame RSI and Stochastic turned...
After making a new low on 20th May 2022, SPX erased some of its losses and bounced back into the proximity of 4000 USD. Currently, it trades around the 3960 USD price tag. We continue to be bearish on SPX; however, after more than a month and a half of the selling in major U.S. indices, we are on the lookout for a possible bear market rally. Therefore, we will pay...
The Nasdaq 100 index showed some relief yesterday after plunging on the FOMC minutes announcement. However, after the market close, the Nasdaq index gave up almost all of its gains in a flash crash. The price action has been choppy over the past week, and the market seems undecided about where to go next. We remain bearish and expect the downtrend to unravel...
Ethereum has been trading sideways since 13th May 2022; we believe that the flat price action indicates a downtrend correction, which aligns with the price retracement toward its 20-day simple moving average. Our view is also supported by declining volume across hourly and daily time frames. Fundamental factors also point to more downside as more hiking in the...
Overnight, the Nasdaq continuous futures opened 1.6% lower. As a result, NQ1! erased its gains from the prior trading session; this development hints at elevated anxiety among market participants, who are eager to take profits off the table as soon as possible. The opening gap pushes the odds to the downside for the stock market. Additionally, we foresee the same...
In our last post on gold from early May 2022 before the FOMC, we reiterated our long-term bullish stance on it. However, we stated that we expected profit-taking to ensue in the short-term, especially if the stock market continued lower. We also speculated about a possible short-lived dip in gold towards 1800 USD. Since then, gold has made a new low at 1786.785...
Over the past week, Bitcoin mainly traded between 28 600 USD and 31 411 USD, resulting in the creation of the rectangle pattern. That suggests that the trend is turning neutral in the short-term. At the same time, the daily time frame shows bullish technical developments, implying more upside for Bitcoin in the short term. We will pay close attention to the upper...
The Nasdaq 100 index showed some relief yesterday and made a higher high since its low on 19th May 2022. However, smaller time frames suggest that the willingness of market participants to buy at rising prices diminishes. Therefore, this leaves us to speculate whether the Nasdaq 100 index is getting positioned for another leg down. At the same time, the daily...
Yesterday, we stated that the rally was due to end and the bearish trend to resume. Then, a few hours later, the Nasdaq 100 index fell more than 5%. In the aftermarket, the selling continued; and in the early hours of futures trading, Nasdaq futures sold off as well. Then, the index (continuous futures - NQ1!) erased some of its losses and turned positive. At the...
Yesterday, the general stock market erased most of its “bear rally” gains. As a result, Bitcoin also erased some of its recent profits; however, not as much as the stock market. We expect Bitcoin to catch up with the stock market and manifest more selling pressure in the short term. Accordingly, we remain bearish and expect BTCUSD to form a new low below 25 000...
So far, Bitcoin has failed to move above 31 411.48 USD, which puts the odds in bearish favor. Technical and fundamental factors also stay bearish. Therefore, we have no reason to change our bearish bias. We expect BTCUSD to form a new low below 25 000 USD. Technical analysis - daily time frame RSI, MACD, and Stochastic remain bearish. The same applies to DM+...
We continue to be bearish on QQQ even despite the current bounce in price (correction). Indeed, we think that the current pricing is attractive for (re)entry of short position. Since all our price targets were hit before the rally; therefore, we would like to set a new short-term price target for QQQ at 300 USD. We would also want to set a medium-term price target...
Yesterday, Nasdaq 100 pushed above the immediate resistance we hinted at in our latest post on QQQ. We think the rally is due to end and the bearish trend to resume. Therefore, we would like to set a new short-term price target for NQ1! at 12 250 USD. We would also like to set a medium-term price target at 12 000 USD. Illustration 1.01 The picture above shows...
In the past week, the market saw a decrease in volatility , which accompanied the relief rally in the stock market. However, just recently, we stated that we expect the rally to be shortlived and to reverse its direction to the downside. We continue to hold this notion also nowadays; indeed, we expect an eventual breakdown in the stock market and new lows to be...
Over the weekend, Bitcoin moved mostly between 28 500 USD and 31 000 USD. So far it has failed to make a new high above 31 411.48 USD; however, there is still some room for more upside before the fall we continue to forecast. Accordingly, we still remain bearish on Bitcoin as we expect it to make a new low below 25 000 USD. At the moment, we will pay close...