Stock Market Is Near Capitulation As Market Rotation Out From This Sector
Market rotation out from this defensive sector could signal the start of stock market capitulation based on the analogue comparison of the global financial crisis in 2008.
Many traders and investors speculated about a potential market bottom or at least a meaningful rally could be around the corner as S&P 500 rallied from the oversold condition below 3900 to almost 4100 just within 4 days.
The rally was expected to be short-lived as explained in the video at the bottom of the post using multiple scenarios focusing on the characteristics of the price action in order to differentiate a bull trap from a market bottom. This was further supported by the bearish reversal off the resistance at 4100 on 18 May 2022 for S&P 500.
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