As expected, we had a zig-zag day. Sort of. The market went up until about noon, then after the bond auction the yields bumped up and investors sold off their shares. It still baffles me how irrational the markets are. Maybe I should stop rationalizing it. An example is Google. The investors sold off the stock after a bad presentation of their AI chatbot. News media posted that investors lost $100 billion yesterday after the debacle. But if investors were dumping shares just because of that, then they are idiots and deserve the losses. I was buying and I will be buying more Google shares.
The trend is deteriorating as can be visible on all charts. It’s not the end of the world, overall we are still in a bullish trend, though it is weak. The chart above is indicating that we may be re-testing the downward-sloping support line (previously the bear market downtrend line). The Ichimoku chart is still bullish though deteriorating too. We are still good as long as all the bullish odds are in place. But caution is needed. We can slip more.
Trend forecasting suggests that we should see a bullish trend tomorrow. But that suggestion is not supported by other charts anymore and I expect this trend will not happen. It will likely be another zig-zag day or a straight downtrend tomorrow.
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