Market at a crossroad
The markets have performed admirably well inthe past week shrugging off headwinds to chart higher grounds. The longterm downtrend line looks to have finally been overcome especially on the broad market was index. However I am still wary of this market environment especially as head fakes are quite its hallmark. So until a sustained hold above the downtrend line has been established I remain cautious.
Technically, I am looking at 4040 on the broad market index as a key level. Hold above this and I expect the market to chugg higher towards 4400 in a wave 3 surge. Below this level and I expect a reasonable retreat towards the 3900 which will be the wave 2 retreat. If that level holds and market turns up from there, a wave 3 rally towards 4400 will then have a high probability.
The FOMC will be the headline for this week. The market has already priced in expectations for a dovish FOMC going forward thanks to the data that has been streaming as well as hopes for the proverbial 'soft landing'. So if they are more hawkish than expected, the market will then switch to 'recession mode' again and start shifting away from growth.
Thanks for reading my commentary!
Stay safe! 😊
$Semiconductor Bull 3X Shares(SOXL)$
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