The market breaking above the top of the candlestick for the trading session on Tuesday, it opens the possibility of a move to the 50-Day EMA, which is near the 11,500 level.
Stock markets are crashing again
The market breaking above the top of the candlestick for the trading session on Tuesday, it opens the possibility of a move to the 50-Day EMA, which is near the 11,500 level. That should be a bit of a dynamic ceiling in the market, so any signs of exhaustion in that area does make a certain amount of sense that we could be looking for shorting opportunities. If we were to break above the 11,500 level, then it would be a very strong turn of events, they could send this market to the 200-Day EMA.
Alternatively, if we break down below the bottom of the candlestick for the trading session on Tuesday, that opens a move back down to the lows again, which does make a lot of sense considering that it’s very likely we see the CPI numbers come out hot. The Federal Reserve is miles away from loosening monetary policy, something that stock traders are desperately hoping will happen. It’s been kind of interesting to see how many times they have come up with a narrative to explain why the Federal Reserve is going to pivot, and to only see their hopes dashed. I think that’s going to continue to be the situation in this market.
The fact that we gave up so much in such a short amount of time tells me just how ugly things got. Some of this was due to a crypto exchange falling apart, but quite frankly at this point it should be obvious that quite a bit of crypto is a major Ponzi scheme, so it’s interesting to see how it influenced the rest of the markets out there. Looking at this market, I expect to see a lot of chops between here and the Thursday announcement that will be parsed quite closely.
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