US30 idea
On the previous setup idea, only the first part has played out. However, the index has respected the various fib golden ratios. Hence, we will stick to them as added confluence. I will also look at a 6-year VIX chart to couple this chart.
On the VIX chart, we can see that the price is currently at a significant zone. May, late Sep, Oct, and December usually have reversal price actions on the VIX. This would signal a change in direction or an amplification of the current movement (10 resistance vs 5 bulls).
What does this all mean to me?
A: Inflationary pressure on the economies is still not over but is being taken into account slowly (Feds are playing catchup). There is still a big disparity between the money in circulation vs economic performance and the Fear & Greed index is at a low.
So one needs to proceed with caution going into October or December. One would rather consider buying when most are selling. That's what I will be doing. Remember your risk management is key.
On the VIX chart, we can see that the price is currently at a significant zone. May, late Sep, Oct, and December usually have reversal price actions on the VIX. This would signal a change in direction or an amplification of the current movement (10 resistance vs 5 bulls).
What does this all mean to me?
A: Inflationary pressure on the economies is still not over but is being taken into account slowly (Feds are playing catchup). There is still a big disparity between the money in circulation vs economic performance and the Fear & Greed index is at a low.
So one needs to proceed with caution going into October or December. One would rather consider buying when most are selling. That's what I will be doing. Remember your risk management is key.
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