Check out the Hidden Bearish Divergence on the Nasdaq 100
Ok so the bulls scored a bounce. The trend is still down, however, and this hidden bearish divergence is clear and compelling evidence that the downtrend will continue into the summer.
I will post another chart for you on the SPX, as I called the top and crash here and think we have MUCH further to fall given the Fed's actions to control inflation, the geopolitical risks, and general slowing economic growth and widening credit spreads. This makes it harder for corporations to finance their liabilities, which cuts investment and cools down investment and therefore demand in the economy -- this is exactly what the Fed WANTS to do to cool inflation via Quantitative Tightening ... They want to create tighter financial conditions and they will.
Therefore, expect a rocky summer in NQ and ES.
I will post another chart for you on the SPX, as I called the top and crash here and think we have MUCH further to fall given the Fed's actions to control inflation, the geopolitical risks, and general slowing economic growth and widening credit spreads. This makes it harder for corporations to finance their liabilities, which cuts investment and cools down investment and therefore demand in the economy -- this is exactly what the Fed WANTS to do to cool inflation via Quantitative Tightening ... They want to create tighter financial conditions and they will.
Therefore, expect a rocky summer in NQ and ES.
