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Friday, April 19, 2024

Revenge rally expected after both shoes dropped

 It was a brutal week for the bulls for sure and the relentless selloffs the whole week have pushed them into the corner. But I think we will likely see a revenge rally next week, if no further escalation of the Middle East crisis is seen over the weekend. The market is in a deeply oversold condition rarely seen, which will release the powerful energy for the extremely suppressed spring to snap back. 

For those who are chasing to short the market these days, good luck!

Keep in mind though, any relief rally, regardless of how strong it may feel like, is doomed to be short-lived. The next leg down will follow that may push SPX down by 10% or more in the weeks ahead! Also good luck for those who will chase the market for the rally!

 

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