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SPX put in a hammer candle early Tuesday morning. Needless to say, we are at very oversold levels. Note previous hammer/inverted hammer candles led to the SPX bouncing. These type of candles post aggressive moves should be observed closely. A confirmation up, and it could be the signal for a short term bounce.
There are several worrying signs about a tanking US economy, and words like recession and stagflation are back in vogue. At the same time, the DOGE boys are gaining momentum with a "no pain no gain" mantra. The question market participants must ask is - what indicators does Trump look at and care about?
Don't think you're so special if you're sitting on a lot of losers
Markets are generally oversold and the all-important CTA community has de-risked, but certain aspects of sentiment in general, gross leverage among hedge funds in particular, make the overall tactical backdrop messy and absolutely not a clear-cut signal. Sign up to Premium to get updated on the latest.