The financial sector is sending a huge warning to all skilled technical traders. You think this big rally in the NQ, ES, YM and other is really the bottom of the market?
The stock market is based on perceived forward earnings, guidance and performance of individual stocks/companies. The COVID-19 virus event has blown a huge hole in the bottom of our boat. 40+ million US working out of jobs. Income levels dropping. Stocks rallying? WTH?
The reality is that risks are quite high that a broader economic collapse will take place over the next 6+ months as the real collateral damage comes into view.
TRAN and XLF are showing that the markets are not stable. HUGE risks continue just below the surface.