MAJOR MARKET BOTTOMS HAVE ONE SIGNATURE: THE ABC.
We've seen this pattern at major turning points:
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$S&P 500(.SPX)$ in 2022
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$BTC in 2020
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$GOLD in 2022
The pattern is simple:
1️⃣ First drop
2️⃣ Fake rally
3️⃣ Final drop
4️⃣ Reversal
Most traders buy the first dip, only to get trapped by the fake rally.
The real opportunity often comes with the LAST drop, before the reversal.
I'm watching for this pattern to develop on $S&P 500(.SPX)$ now.
📊 4 Stocks and ETFs on My Watchlist
The ABC bottom pattern is showing up again across several names.
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$Amazon.com(AMZN)$ : The only one that has confirmed its ABC decline so far. That makes it the strongest of the group and potentially the first to turn.
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$Micron Technology(MU)$ : Still developing its ABC pattern.
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$VanEck Semiconductor ETF(SMH)$ : Still waiting for confirmation.
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$Alphabet(GOOGL)$ : Its ABC structure is also still forming.
Once the ABC pattern confirms in the remaining names, I want to be positioned for the next bullish trend.
Until then, they're on watch.
The key is patience: don't anticipate the reversal. Wait for confirmation.
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