Never rely and any news. Rely on the reaction of the price. Prices are generating profits and losses, not news.
Looks like a dead cat bounce to me. Nothing to push things higher aside from the usual down-trend upspikes. The thing about your megaphone pattern, the low gets lower too. 2023 is gonna close lower than 2022.
Yesterday's mid-range at 4020,75. Weekly mid-range at 4010,25. And trend line resistance in this area for those who believe in those. TL;DR - could be a turning point here. I'm not so sure we're done below after yesterday's late session sell-off, so would certainly not chase the long side right now. Trading wise I'm done for the day. I'm liking only your first sentence. Of course...
I can get on board with that - but my view is we still continue higher first. Ultimately rangebound. Good for traders - not so much investors.
Yes, that's true. That is why the megaphone pattern either gets traded as an expanding range trade or as a breakout. I am looking for the breakout with fresh support and momentum.
I don't trade on news, but I think your statement about nothing to push things higher may be inaccurate since Powell indicated that rate hikes were nearing the end.
I'm gonna shoot ya. One day does not a trend make. It's up over 1% today and I bet it will go up again tomorrow.